H&M Group has announced the closure of its Cheap Monday brand following “a negative trend in the [brand’s] sales and profits for a long time”.
The Swedish giant said that the brand which runs on a traditional wholesale model, which it said was facing “major challenges due to the shift in the industry”.
Cheap Monday operates an online business and a store in London and the winding down of the brand will begin immediately with the store closing on 31 December and the full closure of the brand being complete by 30 June 2019.
Approximately 80 employees are affected by the move and are currently in consultation with H&M and are receiving external career support and guidance on how to apply for roles within the wider H&M Group, which also includes COS, & Other Stories, ARKET and Weekday.
“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,” says Anna Attemark, Head of New Business at the H&M Group.