Swedish fast-fashion retailer H&M has announced that it is taking down its subsidiary brand Cheap Monday which was launched to cater to the demands of skinny jeans in the market. The closure is expected to take place by the end of the current year.
The company issued a statement citing that Cheap Monday has not been performing as per the expectations and negative trends in profit generation propelled the brand to take this huge decision. The Sweden-based fashion label also marked out that its subsidiary failed to match up with the constant changes taking place in the industry.
Notably, H&M as a whole has been struggling to compete with its rival, primarily online competition which has brought a significant dip in the in-store footfall.
The shuttering down of stores are expected to be completed by June next year which will affect around 80 employees with this decision.
Anna Attemark, head of new Business, H&M elucidated that other brands within the business; that include Monki, COS and & Other Stories, are growing at a positive rate, both in their bricks and mortar stores as well as online.
H&M as a whole is doing well . Recently the brand was honoured with the tag of being the number one user of sustainable cotton that shows its effort to work on its sustainability goals. The brand has announced that it expects to source 100 per cent sustainable materials across its unit by 2030.