Two folks maintain two Shein luggage after coming into SHEIN’s first bodily retailer in Madrid, Spain, June 2, 2022.
Cézaro De Luca | Europa Press | Getty Photos
Chinese language fast-fashion large Shein hopes to do an preliminary public providing in the US as quickly as 2024, in line with a report from Bloomberg, which cited folks acquainted with the matter.
But it faces environmental, social and governance, or ESG, issues that could possibly be an impediment to an IPO, in line with the report. Beforehand, Shein had sought a 2022 IPO within the US, in line with Reuters.
Shein, which has a $100 billion valuation, has drawn scrutiny for its low-cost product line that has been constructed on a quick and prolific manufacturing chain. A probe by Swiss watchdog group Public Eye mentioned a few of Shein’s producers have been subjecting staff to harmful circumstances and 75-hour workweeks.
Whereas these issues haven’t dissuaded giant traders akin to Sequoia Capital China, IDG Capital, and Tiger World Administration, current government strikes inside Shein seem to give attention to enhancing their ESG look in preparation for a public providing, in line with Bloomberg.
Shein did not instantly reply to CNBC’s request for remark.
Critics nonetheless take difficulty with Shein clothes short-term wearability, and the criticism has unfold to fast-fashion extra broadly. A 2019 World Financial institution report acknowledged that the annual variety of new clothes produced had doubled from the 50 billion produced in 2000.
Learn the total story at Bloomberg.