The chief executive of the British Fashion Council is demanding scrutiny of Chinese clothing giant Shein’s delayed £42billion stock market float.
In an intervention on the eve of London Fashion Week, Caroline Rush accused Shein of selling ‘poor quality’ garments which may be thrown away before even being worn.
‘We want to make sure the businesses that list here have really great ethics,’ she said.
Rush, who has led the influential fashion council for 15 years, added there is a risk of Shein ‘causing much wider problems for the UK as a whole’, including the impact on the environment of throwaway clothes.
There have been allegations of forced labour in Shein’s supply chain.
The company was expected to make its stock market debut before Easter but now faces delay.
Ethics count: Caroline Rush has accused Shein of selling ‘poor quality’ garments
Its hopes of floating in the City come at a time when the London market is losing companies to rivals. Critics fear this may lead to pressure to let in companies with questionable ethics and business models.
Jonathan Reynolds, the business secretary, last week appeared to support Shein’s hopes, saying there is sufficient ‘transparency and regulatory oversight’ in London.
He added: ‘I want to see companies come to the UK and list here.’
His words are unlikely to quell dissent at London Fashion Week with many believing that fast, cheap fashion from the likes of Shein threatens the £65billion UK industry.
The BFC represents high street and haute luxe businesses, including Burberry, Marks & Spencer, Mulberry and John Lewis.A ll have ethical and green policies that are reflected in their prices.
Shein insists it has a ‘zero tolerance’ approach to forced labour’.
The company’s proposed stock market valuation has reportedly already been reduced from more than £50billion to £42billion. There have been calls from retailers for the ending of the exemption that enables Shein to escape tax on the import of parcels worth less than £135.
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