IKEa has sold off its clothes, diapers and baby dolls business.
The Swedish company said on Thursday it would sell off all its brands and its baby dolls division, and will continue to produce its clothing line.
IKEA, which has been battling declining sales in the U.S. over the past two years, has seen its stock plummet by about 30% since the start of 2017.
“IKEAs clothing business is to be sold to an independent company,” a company spokesperson said in a statement.
“The sales and distribution activities will be transferred to a new independent entity.
The new entity will continue the company’s existing business and continue to deliver the highest-quality and competitive products.
The company did not specify the new entity’s name.
In January, IKEAs parent company Häagen-Dazs announced that it would be selling off the entire business, with the goal of selling the entire IKE aethernet brand portfolio to an entity separate from the parent company.
The sale of IKEas brands will be made “in line with the market-driven strategy that has been in place since the IKE brand’s inception,” the statement said.
IKEa shares closed at 5,071 Swedish crowns (around $4,769) on Thursday, down about 1.5%.