Zombie-Mall-King: Jcpenney merged with Forever 21 owner

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jcpenney is entering into a fusion with a company that has several former bankrupt clothing stores, including Forever 21 and Brooks Brothers. This merger forms a new society that will have a significant impact on the future of the American shopping centers.

The merger and the new corporate structure

The 123 -year -old department store Jcpenney is the core of the new company - a joint venture with the Sparc Group, which also has Lucky Brand, Eddie Bauer, Nautica and Aeropostal. This merger creates the new company Catalyst Brands, which represents a risky attempt to combine the battered brands into a new power center of the shopping centers. At the same time, they are dependent on the support of the largest operators of shopping centers in the USA.

a new section for Jcpenney

This merger marks a new section for Jcpenney, the traditional chain, the 2020 during pandemie Insolvency registered . Then it was made by the owners Simon Property Group and the real estate developer Brookfield in a 1.75 Billions of dollars adopted.

The role of Sparc Group

The Sparc Group, which also receives financial support from Simon, has expanded its portfolio by brands that have emerged from bankruptcy and are currently being revitalized.

synergies and efficiency increases

The combination of JCPenney and the other companies "opens up the opportunity to strengthen synergies through cost reduction, cross-marketing and talent sharing," says Neil Saunders, retail analyst and managing director at Globaldata Retail.

challenges for shopping centers

shopping centers have long faced considerable challenges through business tasks and declining visitor traffic. For this reason, Simon and Brookfield have invested business in the bankruptcy. By maintaining the company, at least temporarily, you guarantee that some important tenants are preserved.

Financial key data from Catalyst

The entire equity transaction to found Catalyst starts with sales of $ 9 billion, $ 1,800 branches and 60,000 employees, as a press release announces. Marc Rosen, CEO of JCPenney, will lead the new company that will be based in the office chain offices in Plano, Texas.

customer relationships and marketing strategies

"Our relationships with over 60 million customers and the extensive data we have offered a convincing consumer value promise across our brands," said Rosen in a press release. "We can design a more personalized shopping experience, offer a uniform loyalty and credit card program and ultimately operate effective cross-selling."

The strategy of Catalyst Brands

"The persecuted strategy is not unusual," Saunders told CNN. "There are many brand management companies that consolidated a number of Struggling brands to create something larger than the sum of its parts."

future prospects for Forever 21

In addition, Catalyst announced that she checked “strategic options” for Forever 21 and sold Reebok's US operations, even if no further details were published.