Campaigners urge UK government to block Shein’s London IPO
LONDON (Reuters) -A new campaign backed by British retail consultant and television personality Mary Portas has launched an online petition calling on the new Labour government to block fast fashion retailer Shein from listing its shares in London.
China-founded Shein, known for its $5 tops and $10 dresses, confidentially filed papers with Britain’s markets regulator early last month, two sources told Reuters, kicking off the process for a potential London listing later in the year.
The campaign accuses Shein of exploiting workers, damaging the environment and avoiding tax. Some senior UK lawmakers have questioned Shein’s suitability for going public in the UK and called for greater scrutiny of its labour practices, supply chain and use of an import tax exemption.
“Shein refutes these inaccurate allegations, which are based on outdated sources and false claims,” the company said in a statement.
“We are open to engaging with our critics to provide a true picture. Shein has responded to similar incorrect claims with tangible evidence of our commitment and investment to provide a safe and fair work environment across our supply chain.”
Prior to Britain’s July 4 election, Labour indicated its support for Shein listing in London but opposition to the move is building.
The “Say No to Shein” campaign, which is also backed by former Green Party lawmaker Caroline Lucas, wants the government to block Shein’s application to list on the London Stock Exchange until it has completed a thorough investigation into its labour practices, environmental impact and tax arrangements.
Last month a UK-based human rights group, Stop Uyghur Genocide, also launched a legal campaign to block any London initial public offering by Shein.
“Why would we as a country consider embracing a company like Shein onto the London Stock Exchange?” Portas said on Wednesday.
“This is a company with allegations of unethical business practices, modern slavery, and violating labour laws. Surely we are better than this?”
In a statement in May, Shein said it was actively working to improve suppliers’ practices, and investing tens of millions of dollars to strengthen governance and compliance in its supply chain.
The petition had been signed by more than 33,000 people as of July 17.
(Reporting by James Davey and Helen Reid; Editing by Kirsten Donovan and Richard Chang)
