H&M to sell its brand and its stores for $3.4 billion
H&M is expected to close its remaining stores and reduce its workforce to around 200,000 by the end of the year.
The retailer said it will pay $3 billion in cash and stock to buy back its assets, including stores in New York, Los Angeles and Chicago.
The deal will also see the retailer acquire stores in Singapore, Australia and Hong Kong, the company said in a statement.
H&am is one of the world’s largest home decor retailers, with stores in more than 100 countries.
The company said the deal will help it “create and expand” new products and to further “reinvigorate the brand.”
The sale will also provide H&ams customers a “full and complete return to the brand and home decor experience,” it said.
Hampers’ announcement comes after the retailer reported a $6.2 billion loss in the second quarter, the largest in its history.
In October, it announced that it would stop stocking designer brands.
The news comes as the industry faces another wave of layoffs.
Macy’s announced last month that it will lay off 4,000 workers in an effort to cut costs.
In December, Macy’s also cut its full-year profit forecast for the year by 25%.