The boss of struggling retailer Superdry is calling on the government to take action after claiming fast-fashion brand Shein has been allowed to “dodge tax”.
Julian Dunkerton, founder of the Gloucestershire-based clothing chain, told the BBC the rival firm had an “unfair advantage” as it does not have to pay import duties on parcels sent from abroad. Under current rules, imports under £135 being sent to shoppers in the UK from overseas are not charged any tax.
Shein did not comment on the claims by Mr Dunkerton on Tuesday but has previously said it meets all its tax liabilities in Britain. It has also said in the past its success is a result of an “efficient supply chain” rather than being exempt from paying import duties.
Meanwhile, the Treasury has insisted UK policies around tax need to balance the interests of shoppers and retailers.
“The rules weren’t made for a company sending individual parcels [and] having a billion-pound turnover in the UK without paying any tax,” Mr Dunkerton told the BBC. “We’re allowing somebody to come in and be a tax avoider, essentially.
“Personally, I would force them into paying import duty, VAT and possibly even an environmental tax.”
Superdry stopped trading on the London Stock Exchange in July after months of uncertainty over the brand’s future. The beleaguered chain agreed a rescue deal with shareholders in June. The delisting is part of a package of measures that includes a £10m equity raise underwritten by Mr Dunkerton.
Superdry, which is headquartered in Gloucestershire, said its plan it will make “material cash savings” over a three-year period.
Shareholders agreed the plan after taking into account a number of factors including Superdry’s liquidity requirements; the interests of creditors; participation in the open offer; and the level of support for the relevant resolutions.