H&M shuts down Cheap Monday brand

Aiming to focus on its core business, Hennes & Mauritz AB (H&M) has decided to close down Cheap Monday following a negative trend in the brand’s sales and profits for a long time. The company said, this step would affect around 80 Cheap Monday employees and operations in Tranås and Stockholm, Sweden.

“We need to constantly develop our business and what we choose to invest in. 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,” said Anna Attemark, Head of New Business at the H&M group in a statement.

The company said that the closure is planned to start immediately, with the aim of being complete by June 30, 2019 with the Cheap Monday store in London and its online store closing on December 31, 2018.

The company added that Cheap Monday has a traditional wholesale business model, which has faced major challenges due to the shift in the industry. The company has started a dialogue with union representatives and H&M plans for terminate all employment contracts during 2019.

Picture:Facebook/Cheap Monday