JCPenney is merging with a company that owns several other retailers that have also struggled as malls have declined in popularity across the U.S. The 123-year-old department store chain and SPARC Group have combined to form Catalyst Brands,

JCPenney and SPARC Group today announced that they have combined to form a new organization, Catalyst Brands, creating an unmatched portfolio of six iconic retail banners that celebrate the essence of American style.

The transaction was announced Jan. 8 with the new company launching with $9 billion in revenue, 1,800 stores and 60,000 employees.

The department store chain said that the all-equity merger brings its banner and various exclusive private brands under the same umbrella as Sparc’s portfolio, which includes Eddie Bauer, Lucky Brand and Nautica.

Zoom in: Catalyst was formed via an all-equity transaction between the department store chain JCPenney and Sparc Group's shareholders Simon Property Group, Brookfield Corporation, Authentic Brands Group and Shein. JCPenney CEO Mark Rosen will lead the new Plano, Texas-based entity.

JCPenney and SPARC Group, which holds a portfolio of brands including Aéropostale, Brooks Brothers, Eddie Bauer, Lucky Brand and Nautica, have formed a joint venture in an all-equity transaction to create Catalyst Brands. The new company launches with more than $9 billion in revenue, 1,800 store locations and 60,000 employees.