Superdry boss calls for drastic tax measures against low-cost Chinese rival Shein ahead of £50bn IPO

The boss of Superdry has branded rival chain Shein a “complete environmental disaster” and accused it of tax avoidance.

Julian Dunkerton yesterday called for fiscal restrictions against the Chinese fast fashion giant, which plans to list on the London Stock Exchange for 50 billion pounds.

Ministers should close the “loophole” that allows Shein to avoid import duties by sending its low-value packages directly to customers in the UK, he said.

The fee is not charged for packages with a value under £135 that are sent directly to buyers.

“The rules were not made for a company that sends individual packages and has a turnover of £1bn in the UK without paying any tax,” the entrepreneur who founded Superdry in 2003 told the BBC.

He added: “It would force them to pay import duties, VAT and possibly even an environmental tax.”

Dunkerton described the Chinese company as a “complete environmental disaster.”

Shein, which has also faced strong backlash over alleged poor working conditions, has previously said it complies with all its UK tax obligations.

The EU is preparing to scrap customs duties on packages sent from outside the bloc.

And President Biden has proposed cracking down on the loophole in the US. Meanwhile, Dunkerton, 59, was optimistic about Superdry’s future as a private company after it left the London stock exchange earlier this year.

He said the company was outperforming its high street rivals by 35 per cent.

“We’ve had the best start to a season in 15 years. It’s actually quite exciting at the moment,” he said.

“I’ve been able to get my hands dirty since we left the list, which has given me more time to do my job properly.”

He added that the industry was “cyclical” and that Superdry, which had struggled for years with an old-fashioned image, was becoming “very attractive to teenagers” again.