H & M, the world's second-largest fashion retailer, said on Tuesday it would close its independent brand, Cheap Monday.
H & M, the world's second-largest fashion retailer, said on Tuesday it would close its second-largest independent brand, Cheap Monday.
In 2008, H & M bought Fabric Scandinavien AB, owner of the Cheap Monday brand, whose branded product is the low-priced skinny jeans, and the chain stores Weekday and Monki.
Monday's cheap products are sold mainly through around 3,000 resellers worldwide. They are also sold through their own online store, a flagship store in London and in the online market of Alibaba, the Chinese Tmall.
"Cheap Monday has a traditional wholesale business model, which is a model that has faced major challenges due to change in the industry," H & M said in a statement.
"There has been a downward trend in the sales and profits of Cheap Monday for a long time. The H & M group therefore intends to close Cheap Monday."
Fabric Scandinavien was H & M's first acquisition. Since then, H & M has launched several independent chains, such as COS and & Other Stories, to expand its customer base.
"We see very good opportunities and great potential for all other brands within New Business, which are developing positively both digitally and through physical stores," H & M said on Tuesday.
Its main brand of H & M, which has struggled to adapt to the industry's online change, still accounts for most of the business.
H & M said it intends to close Cheap Monday, which affects about 80 employees, by the end of June 2019.
(Reporting by Anna Ringstrom, editing by Louise Heavens)