Shein Said to Weigh Cost Reset for Late Backers Before IPO
The retailer is considering lowering the investment cost for late backers who came in at a valuation of up to $64 billion as it prepares to list at a much lower value, people familiar with the matter said.
Shein, the American fashion company, is reportedly considering resetting costs for late backers ahead of its upcoming IPO, according to recent reports. The company has been grappling with a quarter that included the abandonment of a merger, the scrapping of brand divestments, and significant executive reshuffling. Market reaction will be keenly watched as Canadian and US negotiators strive to avert 50 percent tariffs on Canadian goods before a deadline of August 19.
While trade discussions remain constructive, substantial work remains to address key disputes. Simultaneously, retail sales dipped by 0.6 percent in the previous month, after a slight 0.2 percent increase in June. However, clothing store receipts experienced a rebound of 1.9 percent, potentially driven by back-to-school shopping.
The company's recent difficulties may serve as a cautionary tale for founders establishing new fashion startups, highlighting the importance of avoiding strategic and reputational blunders.
Written by urgent.news from Business of Fashion's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
