H&M, a famous Swedish fashion giant, decided to close its brand Cheap Monday, The Local Sweden reported.
An official statement regarding the closing down one of its brands, Cheap Monday, was released on Tuesday. According to the document, the process beginning immediately and expected to be completed by summer next year. Unsurprisingly, shares in H&M rose by 0.7 percent following the decision. H&M also owns several other independent brands, including COS and &OtherStories.
Next month, the Cheap Monday online store and shop in London will be closed, confirmed H&M’s statement.
“Cheap Monday has had a negative trend in sales and profits for a long time. The H&M group therefore intends to close down Cheap Monday,” the company said.
The HR department revealed that a total of 80 employees, most working in Tranås and Stockholm, will be affected by the closure of a Cheap Monday mark. Despite such a move, the staff will be offered the chance of looking for further work within the H&M Group as well as transition support, said the statement:
“Discussions and negotiations with union representatives have begun and the plan is that the employment periods will end gradually during 2019.”
The H&M Group acquired Swedish fashion company FaBric Scandinavien, which runs Weekday and Monki as well as the Cheap Monday brand, back in 2010, after buying 60 percent of the shares in the company two years earlier.