TOPLINE
Fast fashion retailer Shein shot down a Thursday report from Reuters that claimed it confidentially registered with regulators for a U.S. initial public offering, in what would be a highly controversial listing in the U.S. given controversy around the brand’s labor practices.
KEY FACTS
Shein told Forbes in an email that it denied “rumors” around the Reuters story, which reported the company had filed for an IPO with the Securities and Exchange Commission.
The company, which has been surrounded by controversy over allegations of using forced labor, could have been the most valuable Chinese company to go public in the U.S., according to Reuters.
Shein was valued at $66 billion following a $2 billion funding round from this year—a valuation down more than 25% from a year earlier, according to the Wall Street Journal.
Shein did not immediately respond to a request for comment from Forbes.
KEY BACKGROUND
Shein is known for its fast fashion platform that offers low prices on a wide variety of men’s and women’s clothing, making it a popular brand in the U.S. According to a Money.co.uk report last year, Shein managed to overtake companies such as Zara, Nike and Adidas in the world’s most-Googled clothing brands. However, the company’s success comes at a highly-scrutinized cost involving high emissions and alleged forced labor that lawmakers have encouraged the SEC to crack down on. The company produced about 6.3 million tons of carbon dioxide in 2021 and has historically denied forced labor allegations and maintained that it has worked to comply with customs and import laws. However, attempts to clear its record, such as a tour of a clothing factory given by the company to influences, have been met with skepticism.
BIG NUMBER
$100 billion. That was Shein’s reported valuation in a funding round last year before plummeting down to around $60 billion this year.
FURTHER READING
Exclusive: China’s Shein files for U.S. IPO -sources (Reuters)