Two people hold two Shein bags after entering SHEIN’s first retail store in Madrid, Spain, June 2, 2022.
Cesaro de Luca | European Press | Getty Images
Chinese fast-fashion giant Shein hopes to go public in the United States as early as 2024, according to a report by Bloomberg citing people familiar with the matter.
However, according to the report, it faces environmental, social and governance or ESG concerns that could pose a barrier to an IPO. According to Reuters, Shein had previously aimed for a 2022 IPO in the United States.
Shein, which is valued at $100 billion, has taken a close look at its low-cost product line, which relies on a fast and productive production chain. An investigation by Swiss watchdog group Public Eye found that some of Shein’s manufacturers have exposed workers to hazardous conditions and 75-hour workweeks.
While these concerns haven’t deterred major investors like Sequoia Capital China, IDG Capital and Tiger Global Management, recent leadership moves at Shein appear to be focused on improving its ESG performance in preparation for an IPO, according to Bloomberg.
Shein did not immediately respond to CNBC’s request for comment.
Critics still bemoan the short-term wearability of Shein garments, and the criticism has extended to fast fashion. A 2019 World Bank report said the annual number of new garments produced has doubled from the 50 billion produced in 2000.
Read the full story at Bloomberg.
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