Controversial China-based fast fashion company Shein quietly filed for an IPO earlier this month in London, valuing it at around $63 billion according to several media outlets, including Wall Street Journal AND CNBC.
The discussions are said to be “private” and noted that the retailer would still prefer a US IPO, but due to the controversy and backlash surrounding questionable labor practices from American lawmakers, this notion seems impossible.
Shein first tried to file for an IPO in the US at November 2023 (at a valuation of around $90 billion) and failed. It is noted that although the company has filed for IPO in London, it does not mean that the company will get it.
Shein is headquartered in Singapore, where it has been since 2021, although most of its operations, including factories, remain in China. To file an IPO in the US, Shein needs permission from the Chinese government.
Last year, the company's sales surpassed Zara and H&M with $32.2 billion in sales, for threshold.
Last summer, the fast fashion company was sued by three designers for copyright infringement who claimed the company was making exact copies of their designs.
“It is extremely depressing, insulting and evil to take advantage of artists without their knowledge or permission,” the July 2023 lawsuit said.
Another lawsuit in April 2024 claims that Shein has stolen designs and used AI technology to steal artwork from designers and pass it off as her own.
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In an earlier statement to Entrepreneur, Shein denied the theft allegations and said the company plans to fight the lawsuits.
“Shein takes all claims of infringement seriously and we take swift action when complaints are raised by valid IP rights holders,” said a spokesperson for the brand. entrepreneur last summer. “We will vigorously defend against this lawsuit and any claims that are without merit.”
for ReutersShein was valued slightly higher at $66 billion in a fundraising round last month.