Mall mania continues: Owner of Aéropostale and Forever 21 merges with JCPenney
Investors have been pumping their cash into mall companies lately, as some retailers come back into fashion and investors tap into their nostalgia. That was on display again Wednesday, as JCPenney announced a merger with Sparc Group, the owner of brands including Lucky, Eddie Bauer, Aéropostale, Forever 21, and Brooks Brothers.
In 2020, JCPenney filed for bankruptcy and then got bought for $800 million by commercial real-estate juggernauts Simon Property and Brookfield. The new company, called Catalyst Brands, will now operate a combined 1,800 store locations, with 60,000 employees and $1 billion in liquidity.
The deal comes as mall foot traffic has started to pick up and some nostalgia-laced retailers are staging a comeback. Shares of Abercrombie & Fitch, for example, have surged about 60% over the past year after the company shifted to leaner store footprints and a more expansive clothing range. Rival American Eagle is back to ranking as a top brand pick for teens. And Build-A-Bear has been on a tear.
In 2020, JCPenney filed for bankruptcy and then got bought for $800 million by commercial real-estate juggernauts Simon Property and Brookfield. The new company, called Catalyst Brands, will now operate a combined 1,800 store locations, with 60,000 employees and $1 billion in liquidity.
The deal comes as mall foot traffic has started to pick up and some nostalgia-laced retailers are staging a comeback. Shares of Abercrombie & Fitch, for example, have surged about 60% over the past year after the company shifted to leaner store footprints and a more expansive clothing range. Rival American Eagle is back to ranking as a top brand pick for teens. And Build-A-Bear has been on a tear.
