“There has been a negative trend in Cheap Monday’s sales and profits for a long time,” the company said in a statement. The label’s wholesale business model is ill-adapted to shifts in the industry, it added.
Around 80 employees, mostly based in Sweden, will be affected, and the company aims to end all work contracts during 2019. Employees will be provided with external career support as well as guidance on how to apply to other positions within the group, H&M said.
“We need to constantly develop our business and what we choose to invest in,” said Anna Attemark, who heads the group’s “new business” department, which regroups labels outside the core H&M brand, including Cos, Monki and & Other Stories. All other labels in the department are developing positively both digitally and online, she added. Attemark, who was appointed in February, joined the fast-fashion giant from Swedish clothing label Odd Molly.
H&M plans to close the Cheap Monday business by the end of June next year, with the label’s London store and online retail to shutter at the end of this year.
H&M has embarked on a broad overhaul, bulking up logistics networks and investing in digital means in order to catch up, after rivals sped ahead while it struggled under the weight of unsold inventory.
Cheap Monday started out as a jeans label in 2004, and expanded into a full range of apparel the following year. Since 2008 it has been owned by H&M, which opened the label’s first store in Copenhagen in 2009.