Boohoo urges Government to plug tax loophole exploited by Shein — before it attempts to list in London
THE boss of Boohoo has urged the Government to plug a tax loophole exploited by Shein — before it attempts to list in London.
The Chinese fast fashion giant appeals to shoppers with ultra-cheap clothes.
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Critics say Shein sells tops for as low as £3.25 because it ships parcels individually — to dodge import duties that other retailers are legally bound to pay
In the face of rising US-Chinese political tensions, Shein has switched focus from New York to London for a potential £50billion stock market listing.
The stock exchange has been starved of action and ministers are said to be desperate to bring Shein on board, but business leaders say the loophole should still be closed.
John Lyttle, Boohoo’s CEO, said the Treasury would benefit from the extra tax, adding: “I hope the Government does it.”
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The demand came as Boohoo posted a widening in losses to £159million from £90million.
Overall revenues fell 17 per cent to £1.5billion.
It said customer numbers fell 11 per cent to 16million, which it blamed on a tough market backdrop and international struggles.
Boohoo has now opened a warehouse in the US which it says means next-day deliveries for customers in all 50 states — which Shein and Chinese peer TEMU cannot offer because they ship from the Far East.
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I’M £54M IN THE WED
THE newly wed founder of Pretty Little Thing missed a £54million payday due to Boohoo’s sinking share price.
Umar Kamani, who last week spent £20million on his glitzy wedding to model Nada Adelle — attended by stars including Anthony Joshua, Mariah Carey and Naomi Campbell — sold PrettyLittleThing to Boohoo in 2020.
Dirt cheap prices, disturbing data fails and greenwashing fears – inside Shein’s ‘secret’ sister site Romwe
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The deal terms handed him an initial £269.8million and he would have bagged £54million more if Boohoo’s share price had stayed above 491p for six months before March 2024.
But it has crashed to 34.90p as the Covid online shopping boom faded and its losses mounted.
Buried away in Boohoo’s results yesterday, the fashion firm confirmed that Mr Kamani’s potential awards had lapsed.
BOON AT SPOON
THE boss of Wetherspoons says free coffee refills have led to “exhibitions of breakdancing” among its caffeine-fuelled retired customers.
Tim Martin’s unique style of trading update revealed sales rose 3.3 per cent in the last quarter, aided by a revival of real ale, flavoured vodkas and Guinness sales.
Mr Martin said younger punters were trying Guinness — previously a drink for “blokes my age”.
Wines like Kiwi Sauvignon Blanc were also on the up.
He expects profits at the top end of market forecasts.
THE Bank of England is expected to hold interest rates at 5.25 per cent today, but economists reckon they will fall to 4.5 per cent by the end of the year. The EY Item Club expects the first cut in the summer.
BEER BOSS QUITS
BREWDOG co-founder and boss James Watt is stepping down after 17 years of leading the Punk IPA brewer.
In a LinkedIn post, Mr Watt said he had spent “every second of my waking existence” at the firm and will become the “captain and co-founder”.
Chief operating officer James Arrow will take the reins.
It comes two years after Mr Watt was accused of having a “toxic attitude”.
He still owns 21 per cent.
BrewDog is rumoured to be considering a sale or stock market float at some stage.
POT FIRM TO WEED OUT LSE
A BRITISH medical weed firm backed by Snoop Dogg has said it will delist from London.
Oxford Cannabinoid Technologies said it felt “undervalued” — delivering the latest setback for the stock exchange.
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Boss Clarissa Sowemimo-Coker said biotech firms were undervalued while pension funds pulling cash from the UK market “dented the opportunity to raise capital”.
Rapper Snoop’s Casa Verde fund had pumped £8million into OCT before its listing.
The firm, which makes painkillers with cannabis, is considering listing on the US Nasdaq exchange, where there is more support for biotech and bigger pools of capital.
Ms Sowemimo-Coker said that there was also significant interest from private investors to help fund its research into treatments for pain and cancer.
OCT floated in 2020 at 5p but its shares crashed 56 per cent yesterday to 0.14p on the news.
OIL FIRM’S BID SNUB
OIL services firm John Wood Group has rejected a £1.4billion takeover from Dubai-based rival SidaraI.
The Aberdeen-based FTSE 250 firm has been targeted before — and experts said the latest offer was an example of another underestimated British company being swooped on.
Sidara has offered 205p-a-share, a 35.5 per cent premium, but John Wood Group said the offer “fundamentally undervalued the business”.
MORE TSBs SHUT
TSB is shutting 36 more bank branches across the UK — with 250 jobs being axed in the latest setback for staff.
The closures, to start in September, will leave it with 175 outlets — after it had 475 just four years ago.
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It blamed a 43 per cent drop in store transactions for the move.
It comes as TSB’s Spanish owner Banco Sabadell rejected a £10.3billion takeover from its rival BBVA as being “undervaluing” of the bank.
BBVA has said it has “no room” to raise its offer.
COVID JAB’S AXE
ASTRAZENECA has pulled its Covid jab from the worldwide market after more than three billion doses were given.
The British drug giant said newer vaccines were now available to deal with variants, causing demand for its jab to fall.
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It had been hailed as a “triumph for British science” when launched in December 2020 during the pandemic and it is estimated to have saved 6.3million lives.
However, AstraZeneca now faces a number of legal claims about side effects, including blood clots.