Fast fashion giant Shein has abandoned its search for a UK warehouse amid mounting challenges to its planned London stock market listing, which was expected to value the company at £50 billion.

The Chinese ecommerce company confirmed it now has "no plans" to open a warehouse in Britain, after previously scouting potential locations across the Midlands including Derby, Daventry, Coventry and Castle Donington. The company had been considering sites as large as 600,000 sq ft.

"To support the growth of the business, Shein constantly explores warehousing locations worldwide. However, as Shein has no immediate need for a warehouse in the UK, there are no plans to have one," a Shein spokesman told The Telegraph.

The decision comes as Shein faces significant hurdles to its planned London debut, which was expected in the first half of this year. Earlier this month, US President Donald Trump announced plans to remove a key tax exemption that has been central to Shein's business model. The change would eliminate the de minimis exception for packages worth less than $800 from China, though implementation has been delayed.

Industry insiders indicated that property landlords may be hesitant to work with Shein due to concerns over the company's environmental, social, and governance credentials. The company is also facing increased scrutiny from British politicians, with Members of Parliament recently accusing Shein of "wilful ignorance" when company officials declined to specify whether they source cotton from China during a business and trade committee hearing.

Further complications have arisen as campaigners at Stop Uyghur Genocide have initiated a judicial review process aimed at blocking the planned flotation, citing alleged evidence of forced labour in Shein's supply chain. The company has denied these allegations, stating it "strictly prohibits forced labour in its supply chain globally."

Recent reports suggest Shein may need to reduce its valuation to around £40 billion, down from the initial £50 billion target, as these challenges continue to mount.

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