H&M, the second-biggest retailer for fashion in the world confirmed on Tuesday that it would shut down its independent struggling brand named “Cheap Monday”. In the year 2008, H&M bought Cheap Monday from its then owner Fabric Scandinavien AB. The trademarked product sold some skinny jeans that were low-priced. The company also bought the chain stores Monki and Weekday.
The products manufactured by Cheap Monday are mainly sold via 3000 resellers located all over the world. These items are also available for purchase via the company’s online store. Additionally, it is also available on the flagship store located in London along with Tmall, the online marketplace for China-based wholesale seller Alibaba.
The recent shift in the fashion industry has actually changed the fate for Cheap Monday. The company was all about the traditional business model for wholesale. Cheap Monday has been facing negative trends in the sales & profits for quite a long duration. This is why the fashion retailer intends to shut down this brand.
H&M’s very first acquisition was Fabric Scandinavian and since then H&M managed to launch multiple independent chains namely COS and “& Other Stories” in order to broaden the customer base. The company aims to complete this closure by June 2019 which in turn will affect close to 80 employees.