The H&M Group has decided to shut down discount retailer Cheap Monday, 10 years after acquiring it from Swedish apparel company Fabric Scandinavien AB. “There has been a negative trend in the Cheap Monday’s sales and profits for a long time”, said the fast fashion giant in a statement. The company aims to start the closure process immediately and complete by June 30, with Cheap Monday’s London store and e-commerce set to close on December 31.
Commenting on the decision, H&M’s Head of New Business, Anna Attemark, stated: “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”.
All of Cheap Monday’s 80 employees working in the Swedish cities of Tranås and Stockholm will be affected, with contracts to be terminated in 2019. H&M pledged to provide them with external career support and guidance in how to apply for other vacancies within the group.
Founded in 2004 in Stockholm as a second-hand store for high fashion and exclusive denim brands, Fabric Scandinavien created the brand Cheap Monday to offer a more affordable denim option for its clients. It worked so well that they started offering the label to wholesalers one year later, thus catching the eye of the H&M Group, which finalized the purchase in 2008.
Photo: Cheap Monday, Facebook