- Mail on Sunday recently revealed British Fashion Council’s concerns over the float
Shein may scrap its planned £50billion float in London amid growing disquiet in Beijing over the way the fast-fashion retailer is portrayed in the UK.
A series of criticisms levelled at Shein has irked some in the upper echelons of the Chinese government, according to senior City sources.
The attacks have come from politicians, the Press, other retailers and investors.
The Mail on Sunday recently revealed the British Fashion Council’s concerns over the float – the biggest planned around the world this year.
The influential trade body, whose members include Mulberry and Jimmy Choo, said the listing was a ‘significant concern’ to the industry and that ‘questions remain’ about its business practices.
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A backlash from the British Fashion Council’s US equivalent, the National Retail Federation, was one of the reasons that Shein ditched its original plans to float in New York.
Shein has been criticised for using suppliers who exploit low-paid garment workers to sell its clothes at knockdown prices.
The group is based in Singapore, but its cut-price fast fashion is manufactured in China.
As a result, it needs approval from Beijing regulators to list its shares in London.
They are thought to have put up barriers to Shein’s plans to float in New York amid worsening diplomatic relations between China and the US.
The Beijing authorities could now apply pressure on Shein to list in Hong Kong instead of London, a source added.
Shein – founded in Nanjing in 2008 – has tried to distance itself from its Chinese links but the threat to pull the London float suggests Beijing still pulls its strings.
The UK was Shein’s second choice and the float would provide a huge boost to the London Stock Exchange, which has grappled with an exodus of companies and a dearth of blockbuster listings. Shein has hired top PR firms and joined the British Retail Consortium to win over the business community.
Chairman Donald Tang has also met with Chancellor Jeremy Hunt and discussed a listing with the Labour Party in recent weeks.
Shein declined to comment.
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