Fast-fashion retailer Shein has refuted a letter from Reuters that claimed it had secretly registered with regulators for a US IPO in what could be a highly controversial US listing.
- In an email to Forbes, Shein denied “rumors” related to the Reuters article that the company has filed to go public with the Securities and Exchange Commission (the US federal regulator and control of financial markets).
- The company, which has been shrouded in controversy over allegations of forced labor, is perhaps the most valuable Chinese company in the United States, according to Reuters.
- Shein was valued at $66 billion (€60.8 billion) after $2 billion (€1.8 billion) over the year — a valuation more than 25% lower than a year earlier, according to the Wall Street Journal.
- Shein did not immediately respond to a request for comment from Forbes.
Shein is known for its fast fashion platform that offers low prices on a variety of men’s and women’s clothing, making it a popular brand in the United States. According to a Money.co.uk report from last year, Shein has managed to overtake companies like Zara, Nike, and Adidas in the ranking of the most searched clothing brands in the world. However, the company’s success comes at a highly controversial cost, linked to high emissions and allegations of forced labor, which lawmakers have encouraged the SEC to crack down on. The company produced an estimated 6.3 million tons of carbon dioxide in 2021. It has consistently denied allegations of forced labor and said it worked hard to comply with customs and import laws. However, attempts to make his case, such as visiting a garment factory offered by the company to persons of influence, were met with skepticism.
A large number
100 billion dollars (92 billion euros). That’s the value Shein reported in a funding round last year, before it fell to around $60 billion (€55 billion) this year.
Translated article from the American magazine Forbes – Author: Antonio Pecino IV
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