Britain’s Financial Conduct Authority (FCA) is taking longer than usual to approve Shein’s London IPO due to concerns raised by the advocacy group Stop Uyghur Genocide (SUG) regarding alleged links between Shein’s supply chain and forced labor in the Uyghur Region. Sources close to the matter suggest the FCA is reviewing the company’s oversight and preparing for potential legal challenges, including a judicial review application.
The global fast fashion giant Shein confidentially filed for the IPO in June. The FCA’s decision is reportedly being delayed as it examines documentation provided by SUG in August, alleging Shein’s use of cotton sourced from the Uyghur Region, a claim the company denies.
Anti-slavery commissioner weighs in
Eleanor Lyons, the U.K.’s Independent Anti-Slavery Commissioner, expressed concerns over the IPO in letters to government departments earlier this year. She warned that listing Shein could be seen as prioritizing economic growth over addressing labor rights abuses.
“The U.K. must avoid endorsing poor labor practices by allowing companies with questionable supply chains to access its markets,” Lyons wrote in June.
Reuters reports,
The Home Office and Department for Business jointly replied that the FCA decides independently on listings and the U.K. has rules to guard against modern slavery.
Like other retailers, Shein must comply with incoming European Union regulations on forced labour and the Uyghur Forced Labor Prevention Act in the U.S., both of which are considered stronger than Britain’s Modern Slavery Act.
Legal risks and global scrutiny
SUG’s executive director Rahima Mahmut confirmed discussions with lawyers are underway regarding next steps, signaling the possibility of a judicial review application if the IPO is approved. Meanwhile, Shein faces increased scrutiny over forced labor legislation, including the Uyghur Forced Labor Prevention Act in the U.S. and upcoming EU regulations.
The FCA has declined to comment, stating timelines for IPO approvals vary case by case. However, market observers note the regulator is under pressure from the U.K. government to boost IPO listings amid a wider push to make the City of London more attractive for business.
For Shein, which was valued at $66 billion last year, the IPO will test how such risks are perceived by investors. Despite its dominance in the fast-fashion sector, worker exploitation allegations remain a pressing issue for both low-cost and luxury brands globally.
Freedom United’s call to action
Shein’s IPO cannot be allowed to proceed without accountability for the devastating human cost of its practices and they won’t change their business practices unless governments and consumers demand it.
Join us in calling for change. Together, we can hold Shein accountable and urge them to clean up their supply chains. Write to Shein today and add your voice to the growing global movement calling for ethical practices and transparency in fashion.
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