Shein, the fast-fashion giant known for its ultra-affordable clothing and rapid production cycle cannot seem to catch a break. Are you looking for signals & alerts from pro-traders? Sign-up to Invezz SignalsTM for FREE. Takes 2 mins.
The company already suffered a setback last year when it had to scrap its original plans to list in New York after US lawmakers raised concerns over alleged labour malpractices and lawsuits from competitors, besides flagging the company's "deep ties to China". Now, ahead of a highly-anticipated IPO in London, the news flow related to the company's practices is causing experts and analysts to wonder if Shein's UK plans will meet the same fate as its US ambitions. The China-founded group that made more than $2bn in profits for 2023 and registered sales of $45bn on its website, was valued at $66 billion in its last funding round, and its IPO valuation is expected to hover around that figure.
Accusations of 'tax dodging' and impact of regulatory tightening Copy link to section Earlier this week, Superdry's chief Julian Dunkerton accused Shein of "dodging tax" and urged the UK government to get rid of the loophole which enabled the fashion major to export individual parcels directly to customers without paying any import duty. Dunkerton was referring to the rule that exempts shipments worth less than 135 pounds from import duties. Since Shein dispatches low-value parcels directly to customers from overseas, it is not charged an import duty on them.
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