H&M group is to close its Cheap Monday fascia, resulting in the loss of 80 jobs.
“The fashion industry is in a period of extensive change as a result of ongoing digitalisation,” the business said.
“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 it down.”
The closure programme will start immediately and is expected to be complete by 30 June 2019.
H&M group is in talks with union representatives and said the 80 Cheap Monday employees affected by this decision will be provided with external career support and guidance on how to apply to continue working within the business.
Drapers exclusively revealed in October that Cheap Monday’s only UK store – at 39 Carnaby Street in London – was to close. H&M has now confirmed that it will pull down its shutters for the last time on 31 December.
The brand’s ecommerce site will be taken down on the same day.
Cheap Monday launched in 2004 and opened its first shop in Copenhagen in 2009.
“We need to constantly develop our business and what we choose to invest in,” said Anna Attemark, head of new business at the H&M group.
”We see very good opportunities and great potential for all of the other brands within the business, which all are developing positively both digitally as well as through physical stores.”