VF Corp., the renowned American apparel and footwear company, has recently announced that its Lee and Wrangler jeans will soon be spun off as an independent public company as VF Corp will be focusing more on its other brands such as North Face and Vans that have proved to be more profitable.

Reportedly, profitability from jeans businesses like Lee and Wrangler have declined lately as supermarket chains like Walmart have launched their own private labels. But brands like Vans which produce sneakers popular among skateboarders, have seemingly raked in commendable profits which have in turned helped VF Corp to grow in the recent years. While VF’s overall annual sales climbed by 12.5% in the latest reporting period, the company’s jeans sales fell by 1% in the same duration.

In a move to further concentrate in the promotion of its outdoor wear and athletic names, VF has already sold its Nautica apparel brand. The company is also holding on to its Timberland brand as it has become evident to the firm that outdoor and action sports is the fastest growing coalition for VF and also represents a large portion of its annual revenue.

According to CNN Money, VF CEO Steve Rendle has been quoted stating that locating profitable brands at the base of the Rocky Mountains will enable the company to enhance innovation, undertake collaboration across brands, and retain a loyal consumer pool.

While VF will soon be shifting base to Denver, the new jeans company which has not been named yet, will move to the company’s already established base in Greensboro, North Carolina. In order to generate increased sales, the company will be focusing its efforts in the Asian market, especially in China.

The new company will be structured as tax-free to shareholders and is expected to achieve greater flexibility while pursuing acquisitions or exploring new business areas. The spin off is anticipated to be closed off in the first half of 2019.