Shein has deleted plans to open a British warehouse, so that his prospects further cloudle for a blockbuster £ 50 billion mention on the London Stock Exchange.
The fast fashion giant had scored large -scale warehouse locations in the East Midlands, including Derby, Daventry, Coventry and Castle Donington, but has now confirmed that it has “no plans” to continue.
The relocation comes in the midst of increasing regulatory pressure in the UK, the US and the EU, as well as an intensified control of Shein’s Supply Chain Transparency and ESG references.
The direct-to-consumer model of Shein is based on sending small tax-free packages from China, and benefits from the US The Minimis exemption, with which packages can enter less than $ 800 (£ 645) tax-free. Former US President Donald Trump recently announced plans to close this Maas in the law, a decision that could significantly influence the activities of Shein if implemented.
In the meantime, the EU is reportedly planting similar tax reforms, which means that Shein’s ability to bypass import tasks further.
Shein’s London IPO ambitions are also overshadowed by accusations of forced labor. Last week, Campaign Group Uyghur Genocide launched a judicial assessment process that was aimed at blocking the offer, stating alleged ties with forced labor in China – Claims Shein strongly denies, and explains that “strictly prohibits forced labor in its supply chain in its supply Chain worldwide. “
In addition, British MPs have performed their control by Shein and called last month for business leaders for the Business and Trade Committee to answer questions about their sourcing practices. When civil servants refused to confirm whether Shein Cotton gets from China, MPs accused the company of ‘deliberate ignorance’.
Shein was originally planning to mention in the first half of this year on the London Stock Exchange, in what would have been one of the largest IPOs of the UK. The company is said to be considering reducing its appreciation to £ 40 billion, against an earlier estimate of £ 50 billion.
In the meantime, insiders in the real estate industry suggest that Shein’s ESG -worries the British warehouse tenants, which further complicates the expansion plans.
Despite the challenges, a spokesperson for Shein played the warehouse U-turn and stated: “To support the growth of the company, Shein is constantly investigating worldwide. However, because Shein does not have an immediate need for a warehouse in the UK, there are no plans to have one. “
While the regulatory, ethical and operational pressure set up, the ability of Shein remains to protect a London stock market debut and to expand its British footprint in serious doubt.