JCPenney is merging with a company that owns a number of other once-bankrupt clothing stores, including Forever 21 and Brooks Brothers, to form a new company that will hold significant sway over the future of America’s malls.

JCPenney has merged with Sparc Group, the owner of several well-known brands, including Forever 21, to create a new company called Catalyst Brands. The merger, announced on Wednesday (January 8), forms a joint venture that combines JCPenney with Sparc Group's brands,

JCPenney is combining with the owner of fellow shopping mall staples Aéropostale and Lucky Brand after a merger of two brand portfolios in an all-equity transaction Wednesday.