Swedish high street retailer Hennes & Maurits, announced signing Fabric Scandinavian AB. The privately owned fashion company is behind store chains Weekday and Monki. The Swedish fashion group also designs and sells fashion through a number of own brands, such as Cheap Monday. The turnover for the financial year 2007/08 is expected to reach approximately SEK 400 million. The company will be run as a stand alone subsidiary within the H&M Group.
The subsidiary Weekday Brands designs, produces and runs wholesale selling of young fashion. Its largest own brand is Cheap Monday, primarily a denim line. The idea behind Cheap Monday is fashion at good prices, similar to H&M's business idea; fashion and quality at the best price. Cheap Monday is sold in more than 1,000 stores globally. Among the brands are also MTWTFSS Weekday and Sunday Sun.
H&M acquires 60 percent of the shares in Fabric Scandinavian for SEK 564 million in cash. Sellers are the founders Adam Friberg, Lars Karlsson, Örjan Andersson and Linda Friberg. They will all continue to work within the company. In connection with the transaction the parties entered into agreement according to which H&M has the possibility/obligation to acquire the remaining shares in the company within three to five years. The total turnover of the Group's business was approximately SEK 250 million during the financial year 2006/07, with an operating result of SEK 67 million. The expected turnover for the financial year 2007/08 is approximately SEK 400 million with continued good profitability. The employment conditions for the 300 employees will not change as a result of the transaction. The transaction is conditioned by acceptance of relevant competition authorities.
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