Ivanka Trump closing down her fashion business to focus on public policy

Ivanka Trump is closing down her namesake fashion brand in order to focus on public policy and her role as a senior adviser to her father, President Donald Trump.

The Wall Street Journal reported that the 18 employees of IT Collection LLC were notified on Tuesday, noting that later in the day Ivanka Trump would address the staff directly.

What's the situation?

In a statement to Page Six, Ivanka Trump said, "When we first started this brand, no one could have predicted the success that we would achieve. After 17 months in Washington, I do not know when or if I will ever return to the business, but I do know that my focus for the foreseeable future will be the work I am doing here in Washington. So making this decision now is the only fair outcome for my team and partners."

Trump added that she is "beyond grateful for the work of our incredible team who has inspired so many women, each other and myself included. While we will not continue our mission together, I know that each of them will thrive in their next chapter."

Launched in 2014, IT Collection LLC is privately held and does not disclose its financials. But a Securities and Exchange Commission filing in 2017 showed net sales of the Ivanka Trump clothing line reaching more than $43 million.

After joining the White House,  Trump still continued receiving profits from her company, even though she had stepped away from the business and placed restrictions on operations in an effort to avoid any conflicts of interest while working for her father's administration.

But why would she shut it down?

Shortly after President Trump took office,  Ivanka Trump told CBS News that selling her business was not an option.

"Because the name of the business is Ivanka Trump," she said, "[if] I sold the business an independent third party would be able to go around the globe today licensing and leveraging the name of the 45th president of the United States of America — completely unfettered."

IT Collection LLC's link to the Trump name has also made the company the target of political boycotts, and a number of retailers — most notably Nordstrom — have dropped the line over the past 18 months citing slow sales.

Company president Abigail Klem released a statement in response to the shutdown, saying that she and others on her team were "incredibly proud of the brand we have built and the content and product we've developed."

"I know that this was a very difficult decision for Ivanka and I am very grateful for the opportunity to have led such a talented and committed team," Klem said. "When faced with the most unique circumstances, the team displayed strength and optimism."