H & M, the world's second largest fashion retailer, said Tuesday that it would close its fiercely independent brand Cheap Monday.
STOCKHOLM: H & M, the world's second largest fashion retailer, said Tuesday that it would close its fiercely independent brand Cheap Monday.
H & M 2008 bought Fabric Scandinavien AB, the owner of the cheap Monday brand, whose branded product is cheap skinny jeans and the Weekday and Monki stores.
Cheap Monday products are mainly sold through approximately 3,000 retailers worldwide. They are also sold via their own online store, a flagship store in London and online marketplaces Asos and Zalando.
"Cheap Monday has a traditional wholesale business model, which is a model that has faced major challenges due to the transition in the industry," H & M said in a statement.
"There has been a negative trend in cheap Monday sales and earnings over a long period of time. Therefore, the H & M Group intends to close cheap Monday."
Fabric Scandinavia was H & M's first acquisition. H & M has since launched several independent chains such as COS and & Other Stories to broaden its customer base.
"We see great potential and great potential for all other New Business brands, all of which are developing positively both digitally and through physical stores," said H & M on Tuesday.
Its core value H & M, which has struggled to adapt to the network shift in the industry, still accounts for most of the business.
H & M said it aimed to complete the closing of Cheap Monday, affecting approximately 80 employees, at the end of June 2019.
(The story corrects in the third paragraph to Asos and Zalando)
(Reporting by Anna Ringström, editing of Louise Heavens)