Thursday, March 6, 2008

H&M Purchases Cheap Monday

Swedish fast fashion giant H&M has purchased a 60% stake in Fabric Scandinavien the parent company of Cheap Monday. The 60% stake cost H&M a cool $92 million US (564 million kronor), with the option to buy out the remaining 40% of the next several years. What does this mean for Cheap Monday? Well it means that the company will most likely become more profitable as they will probably begin to work with H&M's manufacturing facilities and distribution centers. This buy out does not mean that CM will be stocked at H&M's its unlikely that that will occur. It will be interesting to see what occurs from this partnership and how this effects buyers worldwide, I feel CM has steadily alienated those who first embraced the brand and this might be the final step in that direction.

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