Shein halts search for UK warehouse amid London IPO headwinds
Shein has scrapped its plans for a warehouse in the UK, as it faces a series of obstacles to its planned £50bn London listing.
Shein has paused its plans for a warehouse in the UK, as it faces a series of obstacles to its planned £50bn London listing.
The ecommerce platform has halted its search for a location in the Midlands, and said it now had “no plans” to establish a warehouse in Britain, The Telegraph reported.
Last summer, the newspaper reported Shein had sent a team of representatives to visit potential sites across Derby, Daventry, Coventry and Castle Donington. The business was thought to have been considering locations as big as 600,000 sq ft.
However, Shein has faced a series of roadblocks to its planned London IPO in recent weeks.
Last week, it was reported that the retailer’s listing could be at risk after US President Donald Trump moved to close a tax loophole crucial to the fast fashion retailer’s business model.
Trump vowed to ditch the de minimis exemption for small packages worth under £645 shipped from Canada, China, and Mexico to the US, the Telegraph reported.
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Additionally, Stop Uyghur Genocide recently initiated a judicial review process to block the fast fashion firm’s planned float, following concerns of alleged abuses in its supply chain.
Last week, it was revealed Shein was looking to slash its valuation ahead of its IPO, with Reuters reporting it could be cut from £50bn to around £40bn.
Insiders insisted the decision to halt the search for a warehouse had been made in the middle of last year, and came under a broader review of the amount of capacity Shein required in Europe.
A Shein spokesman said: “To support the growth of the business, Shein constantly explores warehousing locations worldwide.
“However, as Shein has no immediate need for a warehouse in the UK, there are no plans to have one.”
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