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H&M completes Cheap Monday acquisition

H&M has acquired the remaining 40 percent of the shares of Swedish fashion concern FaBric Scandinavien, which runs the store chains Weekday and Monki as well as the Cheap Monday brand.

H&M completes Cheap Monday acquisition

“H&M has great faith in the concepts, which are judged to have great potential for the future,” the company said in a statement on Wednesday.

FaBric Scandinavien will be incorporated fully into the H&M Group, but the brands will continue to be operated as separate concepts, the company added.

In the spring of 2008, H&M acquired 60 percent of the shares of privately owned FaBric Scandinavien AB through a cash purchase.

The purchase agreement also included an option to acquire the remaining shares in FaBric Scandinavien. H&M has now exercised this option and purchased the remainder of the shares.

The purchase price for the other 40 percent of the company was 8 million kronor ($1.15 million) in cash, making the total price paid by H&M for FaBric Scandinavien 552 million kronor.

The company has expanded substantially since the acquisition two years ago, more than tripling the number of stores in the network to 66 from 20. Weekday and Monki stores now operate in seven countries.

“The expansion and international roll-out of Weekday, Monki and Cheap Monday will continue,” the company said.

The company was sold by its founders Adam Friberg, Lars Karlsson, Örjan Andersson and Linda Friberg.

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BUSINESS

Swedish retailer H&M sees profits slump after Russia exit

Swedish fashion retailer H&M reported a sizeable drop in third-quarter profit on Thursday following its decision to leave the Russian market.

Swedish retailer H&M sees profits slump after Russia exit

The world’s number two clothing group is among a slew of Western companies that have exited Russia following Moscow’s invasion of Ukraine.

H&M paused all sales in the country in March and announced in July that it would wind down operations, although it would reopen stores for “a limited period of time” to offload its remaining inventory.

The company said Thursday its net profit fell to 531 million kronor ($47 million) in the third quarter, down 89 percent from the same period last year. “The third quarter has largely been impacted by our decision to pause sales and then wind down the business in Russia,” chief executive Helena Helmersson said in a statement.

The group said in its earnings statement that it would launch cost-cutting measures that would result in savings totalling two billion kronor.

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