British financial regulators have postponed approval of Shein’s initial public offering after the company faced difficulties from anti-slavery groups.
The Financial Conduct Authority (FCA) is believed to be reviewing the fast fashion giant’s supply chain controls and assessing possible legal risks related to the listing, Reuters news agency reports, citing sources. This comes after advocacy group Stop Uyghur Genocide (SUG) for China’s Uyghur population launched legal action against the potential IPO, which was filed in June. In a dossier sent to the FCA in August, the organization claimed that Shein used cotton from China’s Xinjiang region, where allegations of forced labor against minorities have been made.
Similar concerns were also raised by the UK’s independent anti-slavery commissioner, who additionally cited allegations about labor practices among Shein’s suppliers. Shein is also still awaiting approval from Chinese securities regulators for the IPO, which is expected to come after the FCA’s decision, according to Reuters.
Shein’s initial public offering, which the company had targeted in the first quarter of next year, has continued to draw criticism in the United Kingdom, a market it had focused on after similar criticism in the United States. Both human rights organizations and British politicians have joined forces to push for the listing to be halted due to concerns about a lack of transparency and resulting environmental issues linked to Shein’s supply chain.
This article previously appeared on Fashionunited.uk and was created using digital tools translated.
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