Recent developments indicate Shein may not secure a spot in the UK’s FTSE 100 index.
- Shein’s business practices face scrutiny from labour rights groups and analysts.
- Approval for Marks & Spencer’s flagship store project is delayed due to political factors.
- Cécile Cabanis has joined LVMH as deputy finance director, aiming for eventual CFO succession.
- These updates highlight significant shifts within prominent companies in the fashion industry.
Recent reports suggest that Shein might not achieve inclusion in the UK’s benchmark FTSE 100 index. According to The Times, the volume of shares offered by the Singapore-based fast-fashion entity is anticipated to fall short of the required threshold, as per city sources’ insights. The rules governing the stock exchange require companies, especially those incorporated outside the UK, to maintain a minimum free float of 25%. Failure to meet this criterion means index tracker funds would not be obligated to invest in Shein shares. Concurrently, both investors and analysts are critically evaluating Shein’s contentious business practices.
The Guardian has highlighted concerns raised by UK labour rights advocates about Shein’s potential inclusion in the FTSE, pointing to the company’s opaque ethical practices. Notably, an investigation by the Swiss non-profit organisation Public Eye revealed excessive working hours among Shein’s garment workers. Shein’s representative stated, “Shein has a zero-tolerance policy for forced labour and we are committed to respecting human rights. We take visibility across our entire supply chain seriously and we require our contract manufacturers to only source cotton from approved regions.”
Marks & Spencer’s plans to revamp its iconic London store face prolonged delays due to the upcoming general election. As reported by This Is Money, complications have arisen from the intervention by Michael Gove’s Department for Levelling Up, Housing and Communities, which has incurred a substantial expense of £141,000 in taxpayer funds over this planning dispute. Marks & Spencer aims to replace the 1929 art deco building near Marble Arch with a modern ten-storey retail and office building, but the project’s approval remains obstructed by governmental opposition.
Cécile Cabanis has recently commenced her role as deputy finance director at LVMH, as reported by WWD. Cabanis, previously serving as deputy CEO at Tikehau Capital, is positioned to succeed Jean-Jacques Guiony, who has held the CFO position for two decades at the luxury conglomerate. This appointment signals a significant transition within LVMH’s financial leadership, highlighting the company’s commitment to strategic personnel development.
These developments underscore transformative movements within the fashion industry, reflecting both challenges and leadership changes.
