"Cheap Monday has for a long time had a negative development of sales and profitability. H & MFor these reasons, the Group intends to discontinue the business of Cheap Monday, "the company writes in a press release.
H & M announces that all of the approximately 80 employees involved will receive external support for career support and "opportunity and support" to seek ongoing work within the H & M Group.
The deal is scheduled to begin immediately and end on June 30, 2019. The Cheap Mondays store in London and the online store will be closed on December 31, 2018.
For the news agency Direkt, H & M says the company does not see enough potential to keep Cheap Monday as a purely online brand. In addition to outside retail stores, Cheap Monday is sold at weekend stores.
"The day of the week sells a lot of jeans and includes a lot of jeans Cheap Monday. Cheap Monday Jeans that sells very well, we will replace with Weekday jeans," says Anna Attemark, H & M Group's new business chief. direct.
At H & M Capital Markets Day in February, the company predicted that Cheap Monday's sales would double from 2017 to 2022.
H & M bought the fashion company Fabric Scandinavia in 2008, becoming the owner of Cheap Monday and the retail chains Weekday and Monki. The company paid a total of SEK 1 billion.