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The Swedish clothing brand Cheap Monday has long performed poorly, and the owner H & M has decided to close the mark.
In a press release, H & M announced that it would give priority to its main business in the future. This is the reason why the company was closed.
About 80 employees are affected in Sweden.
The president of H & M was NOK 16 billion richer in one day
Sold in many places in Norway
The brand is sold in many Norwegian stores, including Weekday, which also belongs to H & M, but also, for example, at Steen & Strøm.
Settlement takes place immediately as H & M writes that the online store and physical stores will be closed by December 31st.
H & M has developed a number of new concepts and brands in recent years, including Cos, Monki, Weekday, Arket, etc., as well as Afound. The group says all these other brands have a positive development.
The brand is also sold on third-party websites such as Zalando and Boozt.
The market does not react firmly to the decision and the stock is slightly modest at 0.64%.
An ambitious business model
The brand has been sold in the wholesale trade and has few stores in its own right, a commercial model under increasing pressure.
"Cheap Monday has a traditional business model using wholesale, a model that has faced major challenges facing a changing industry."
Cheap Monday has only one store and is located in London.
H & M does not write for how long Cheap Monday went wrong, but claims that revenues and revenues were slightly "long".
The latest brands that H & M has established around the world, including Cos, Arket and many others, sell their products in their own stores and online.
In total, the H & M group comprises eight brands (nine with Cheap Monday) and 4,800 stores in 71 different markets.
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