Today’s news in brief-17/12/24
Shein’s potential London IPO may challenge regulatory norms as the company reportedly seeks a waiver from the UK’s 10% public float requirement. If successful, it would mark a first for London’s stock market. Shein filed confidentially with the FCA in June but faces delays due to regulatory scrutiny, including concerns about its supply chain linked to Uyghur advocacy groups. Valued at $66bn (£52bn) last year, Shein’s IPO at a 10% float could be worth $6.6bn (£5.2bn), though its current valuation remains unclear. The company awaits approvals from both UK and Chinese regulators.
The UK retail sector has shed 225,000 jobs over five years, leaving 2.81m positions as of September 2024, according to the ONS. This reduction reflects industry shifts, including automation, outsourcing, and rising labor costs. Retail wages grew by 8.5% in 2024, outpacing the national average and increasing 25% since 2021.
Boohoo’s attempt to sell its Soho head office for £60m fell through after an investor backed out due to survey concerns. The office, bought for £72m three years ago, was listed in August to address a £47m debt repayment due next year. The failed sale comes amid tensions between Boohoo and Frasers, with shareholders set to vote on December 20 on Mike Ashley’s bid for a board seat. Boohoo remains in active negotiations to sell the property.
Landsec has acquired a 92% stake in Liverpool ONE shopping center for £490m from ADIA and Grosvenor, with a deferred £35m payment. This acquisition aligns with Landsec’s strategy of investing in major retail hubs, adding to its portfolio of top-tier shopping centers. Liverpool ONE, which attracts 22 million visitors annually, has seen retail sales rise 5% over the past year and boasts a 96% occupancy rate.
BIC has acquired Tangle Teezer in a €200m (£165m) deal. Tangle Teezer, launched in 2007, has doubled its sales over four years, reaching €70m (£57m) in 2024. BIC aims to expand Tangle Teezer’s market presence by leveraging its global distribution network and commitment to quality products. Tangle Teezer’s CEO highlighted the brand’s focus on innovation and its readiness for further growth under BIC’s ownership, positioning the acquisition as a strategic move for both companies.
