Shein, the highly Instagrammable Chinese fast-fashion company, is being hauled over the coals. The company, estimated 12 months ago to be worth $15 billion, failed to make UK-mandated public disclosures about its working conditions and had stated falsely that it relies on factories certified by international labor standards organizations, according to a Reuters exclusive.
Unlike Zara's owner Inditex (ITX.MC) and H&M (HMb.ST), Shein is a private company so doesn’t have to reveal much about its operations. And accusations of wrongdoing don’t necessarily hit the top line. British online fashion retailer Boohoo’s (BOOH.L) revenue surged 32% in the three months to the end of May, about two months after US authorities decided to investigate claims of poor supply-chain work practices.
That’s not the only number to focus on, though. Thanks in part to growing concern read more from activist investors, Boohoo’s market value has fallen over 20% since March. Gen Z buyers of $3 crop tops aren’t the only ones who can determine what’s fashionable.
