H&M group streamlines and focuses on core business – Cheap Monday to be closed down
The fashion industry is in a period of extensive change as a result of ongoing digitalisation. At the same time the H&M group’s transformation work is continuing at a fast pace, with the company prioritising and focusing on its core business. Cheap Monday has a traditional wholesale business model, which is a model that has faced major challenges due to the shift in the industry. There has been a negative trend in the Cheap Monday’s sales and profits for a long time. The H&M group therefore intends to close down Cheap Monday.
This will unfortunately affect all Cheap Monday employees and operations in Tranås and Stockholm, Sweden. Approximately 80 employees are affected. Dialogue with union representatives has started and the company plans for all employment contracts to be terminated during 2019. All employees will be provided external career support and will be given guidance in how to apply to continue working within the H&M group.
“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.
The closure is planned to start immediately, with the aim of being complete by 30 June 2019. The Cheap Monday store in London and Cheap Monday’s online store will close on 31 December 2018.
Kristina Stenvinkel, Communications Director H&M group
Tel: +46 8-796 39 08
Katarina Kempe, Head of Media Relations H&M group
Tel: +46 8-5780 85 54
The H&M group’s communications department
Tel: +46 8-796 53 00
H & M Hennes & Mauritz AB (publ) was founded in Sweden in 1947 and is quoted on Nasdaq Stockholm. H&M’s business idea is to offer fashion and quality at the best price in a sustainable way. In addition to H&M, the group includes the brands COS, Monki, Weekday, Cheap Monday, & Other Stories, H&M Home and ARKET as well as Afound. The H&M group has 47 online markets and more than 4,800 stores in 71 markets including franchise markets. In 2017, sales including VAT were SEK 232 billion. The number of employees amounts to more than 171,000. For further information, visit about.hm.com.