(Reuters) -Starbucks reiterated on Thursday it’s exploring strategic partnerships for its Chinese operations, after a media report saying the corporate is considering selling a stake within the business to an area partner.

The Seattle-based company, facing a decline in demand for its beverages in major markets resembling the U.S. and China, goals to revamp its U.S. stores and gain a greater understanding of its Chinese operations, the firm’s recent CEO Brian Niccol told investors last month

“All indications show me the competitive environment is extreme (in China)… and we’d like to work out how we grow available in the market … within the meantime, we proceed to explore strategic partnerships that would help us grow in the long run,” he said on an earnings call on Oct. 31.

Bloomberg reported on Thursday that Starbucks was exploring options for its Chinese operations including the potential for selling a stake within the business, and it has gauged interest from prospective investors including domestic private equity firms.

Responding to the report, Starbucks said in a press release it was “working to seek out one of the best path to growth, which incorporates exploring strategic partnerships.”

“We’re fully committed to our business and partners, and to growing in China,” it said, without elaborating.

In China, its second-largest market, Starbucks has grappled with weak consumer spending and stiff competition from local coffee chains resembling Luckin Coffee in a sluggish macroeconomic environment.

Last yr, Luckin pipped its U.S. rival to the highest spot on annual sales for the primary time within the China market.

Starbucks, which operates nearly 7,600 stores in China, has reported declining sales within the country for 3 consecutive quarters, with a 14% fall within the last quarter.

The corporate suspended its forecast for the subsequent fiscal yr last month, as its CEO prepares a turnaround plan for the coffee giant.

(Reporting by Angela Christy, Brenda Goh and Kanjyik Ghosh; Editing by Abinaya Vijayaraghavan, Miyoung Kim and Jacqueline Wong)