• Friday, July 12, 2024

Business

Rights groups oppose Shein’s potential London IPO

Stop Uyghur Genocide has launched a legal campaign to block Shein’s potential London listing over concerns about its labour practices

A view of a Shein pop-up store at a mall in Singapore April 4, 2024. (REUTERS/Edgar Su/File Photo)

By: Shajil Kumar

UK-BASED human rights group Stop Uyghur Genocide has launched a legal campaign to block Shein’s potential London listing over concerns about its labour practices, a law firm representing the campaign group said on Wednesday (26).

Human rights law firm Leigh Day has written to the UK’s Financial Conduct Authority (FCA) to urge the regulator to refuse any attempt by Shein to list on the London Stock Exchange (LSE), it said.

“SHEIN has a zero-tolerance policy for forced labour and we are committed to respecting human rights. We take visibility across our entire supply chain seriously and we require our contract manufacturers to only source cotton from approved regions,” Shein said in a statement.

‘Badge of shame’

Amnesty International UK has also opposed Shein’s LSE listing, saying it would be a “badge of shame” for the exchange, because of its “questionable” labour and human rights standards.

Shein confidentially filed papers with Britain’s markets regulator in June, two sources told Reuters on Monday, kicking off the process for a potential London listing later this year.

“Rewarding Shein’s current methods via a flotation would be a badge of shame for the London Stock Exchange,” Dominique Muller, an Amnesty International researcher specialising in the garment industry, said in a press release.

LSE has declined to comment.

Shein’s listing plans had run into political opposition in the United States over labour concerns.

Shein executives recently met with Amnesty representatives and subsequently responded in writing to a series of human rights related questions, Amnesty International said.

The Chinese-founded fast fashion brand, known for its ultra-low prices, was valued at $66 billion (£52bn) in a fundraising round last year. It is based out of Singapore and operates in more than 150 countries. (Reuters)

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