Two people hold two Shein bags after entering SHEIN’s first physical store in Madrid, Spain, on June 2, 2022.
cézaro de luca | Europe Press | fake images
Chinese fast-fashion giant Shein hopes to make an initial public offering in the United States as soon as 2024, according to a report by Bloomberg, which cited people familiar with the matter.
However, it faces environmental, social and governance, or ESG, concerns that could be an obstacle to an initial public offering, according to the report. Shein had previously sought a 2022 IPO in the US, according to Reuters.
Shein, which has a valuation of $100 billion, has come under scrutiny for its cheap product line that has been built into a fast and prolific production line. An investigation by Swiss watchdog group Public Eye said some of Shein’s manufacturers have been subjecting employees to dangerous conditions and 75-hour workweeks.
While these concerns haven’t deterred big investors like Sequoia Capital China, IDG Capital and Tiger Global Management, recent executive moves within Shein appear to be focused on improving its ESG appearance in preparation for a public offering, according to Bloomberg.
Shein did not immediately respond to CNBC’s request for comment.
Critics still take issue with Shein’s short-term wearability, and criticism has extended to fast fashion more broadly. A 2019 World Bank report indicated that the annual number of new garments produced had doubled from the 50 billion produced in 2000.
Read the full story on Bloomberg.
Source: www.cnbc.com