H&M has announced plans to close Cheap Monday. The skinny jeans brand has a traditional wholesale business model, which is a model that has faced major challenges due to the shift in the industry. There has been a negative trend in the Cheap Monday’s sales and profits for a long time. The H&M group therefore intends to close down Cheap Monday.
The closure is planned to start immediately, with the aim of being complete byJune 30, 2019. The Cheap Monday store in London and Cheap Monday’s online store will close on December 31, 2018, H&M said in a press releaseThe fashion industry is in a period of extensive change as a result of ongoing digitalisation. At the same time the H&M group’s transformation work is continuing at a fast pace, with the company prioritising and focusing on its core business.
"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.
This will affect all Cheap Monday employees and operations in Tranås and Stockholm, Sweden. Approximately 80 employees are affected, the release added. 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. (RR)