H&M GROUP TO SHUTTER CHEAP MONDAY
Swedish fast fashion retailer H&M Group has decided to close its Cheap Monday brand. The closure is planned to start immediately, with the aim of being complete by June 30, 2019. The Cheap Monday store in London and Cheap Monday’s online store will close on December 31, 2018.
In a press release, H&M said that Cheap Monday’s traditional wholesale business model, which has faced major challenges due to the shift in the industry, has caused the brand to report negative sales and profits for some time.
This closing will affect all Cheap Monday employees and operations in Tranås and Stockholm, Sweden. Approximately 80 employees are affected. Dialogue with union representatives has started and the company plans for all employment contracts to be terminated during 2019. All employees will be provided external career support and will be given guidance in how to apply to continue working within the H&M group.
“We need to constantly develop our business and what we choose to invest in,” said Anna Attemark, head of new business at the H&M Group. “We see very good opportunities and great potential for all of the other brands within new business, which all are developing positively both digitally as well as through physical stores.”
Skinny jeans have been Cheap Monday’s trademark since the brand started 2004 when its first ‘Tight’ style hit the market. Today, Cheap Monday offers a full range of denim, fashion collections and accessories for men and women. The brand is closely connected to music and popular culture and is worn by a loyal fan base of creative people.
Cheap Monday is mainly sold through selected retailers worldwide and it also has its own stand-alone stores including a flagship-store on London’s Carnaby Street. Cheap Monday has been part of the H&M Group since 2008. The very first Cheap Monday store opened in Copenhagen in November 2009.
As of August 31, 2018, Cheap Monday had one retail store and 2,000 wholesale accounts in 35 markets, along with 18 additional online sellers.