Singapore-headquartered Shein ends contracts with Brunswick and FGS, signalling delay in London IPO plans
Photo: Depositphotos/DesignerTimi
LONDON: Singapore-headquartered Shein has ended its contracts with Brunswick and FGS, two UK communications firms that were supporting its push for an initial public offering (IPO) in London—an indication that the flotation is not going as planned, Reuters reported, citing a source familiar with the matter.
According to the source, the contracts with the online fast-fashion retailer ended on April 30 and will not be renewed, as reported first by The Times.
Brunswick was handling media relations, while FGS focused on government relations.
Shein's business model, which relies on shipping clothes from Chinese factories directly to customers worldwide, is facing increasing challenges due to steep tariffs on Chinese goods imposed by US President Donald Trump. The removal of a duty exemption on low-value e-commerce packages is also straining Shein's operations.
Brunswick and FGS declined to comment, while Shein has yet to respond to a comment request.
In September last year, the company laid off more than 20 staff at its Singapore office as part of restructuring its global IT research and development centre, amid doubts about its London IPO plans.
Last month, Reuters reported that Shein received approval from Britain's financial regulator for its IPO but is still waiting for approval from China's regulator, which is also required to proceed.
The company had originally planned to complete the listing in the first half of this year, but sources said Trump's tariffs and China's retaliation are likely to push the IPO to the second half of the year. /TISG
Featured image by Depositphotos (for illustration purposes only)
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