Shein, the fast-fashion giant, is said to have filed for an initial public offering
Shein, the ultra-fast fashion retailer founded in China more than a decade ago, has confidentially filed for an initial public offering in the United States, according to a person familiar with plans for the deal who was not authorized to comment publicly to talk about. .
Some companies temporarily keep their IPO paperwork secret so they can prepare for the offering away from the public eye.
Investors had largely expected Shein to make the move this year, after the historically shuttered company began addressing a series of criticisms from consumers and politicians in an apparent effort to change perceptions about its operations and practices.
Any public offering in the United States is likely to attract significant regulatory scrutiny, especially in light of tense relations between the United States and China.
Shein’s plans for an IPO were previously reported by Chinese media companies.
In recent years, Shein has gained popularity among American consumers, especially teens and young adults, for its wide variety of low-priced trendy clothing and accessories. The company was reportedly last valued at $66 billion.
But Shein has also faced claims that it copied designs and benefited unevenly from a U.S. trade rule that allows it to avoid customs fees. And reports Linking the company’s cotton to Xinjiang — a region of China where, U.S. officials say, the government has exploited the labor of ethnic Uyghurs — has led to intense scrutiny.
In April, two members of Congress asked the Securities and Exchange Commission to require Shein, as a condition of the expected offering, to certify through an independent party that it does not use Uighur forced labor. The company has said it has “zero tolerance for forced labor.”
Shein also started a program to work with independent designers a few years ago after the retailer was accused of stealing designs and committed to sustainability goals. It’s also partnering with fast-fashion mall Forever 21, which could lead to more Shein clothing in brick-and-mortar locations.
Not all of Shein’s efforts were well received. In June, a trip the company organized for influencers at some of its warehouses in China was widely panned on social media as tone deaf.
A Shein spokeswoman declined to comment.