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Low-cost E-commerce Rivals Shein and Temu Shelve US Court Cases

A model presents a creation by Indonesian fashion brand Artkea Stripes x IKYK during the Jakarta Fashion Week 2024 in Jakarta, Indonesia, 26 October 2023. The fashion event runs from 23 to 29 October 2023. EPA/ADI WEDA
A model presents a creation by Indonesian fashion brand Artkea Stripes x IKYK during the Jakarta Fashion Week 2024 in Jakarta, Indonesia, 26 October 2023. The fashion event runs from 23 to 29 October 2023. EPA/ADI WEDA
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Low-cost E-commerce Rivals Shein and Temu Shelve US Court Cases

A model presents a creation by Indonesian fashion brand Artkea Stripes x IKYK during the Jakarta Fashion Week 2024 in Jakarta, Indonesia, 26 October 2023. The fashion event runs from 23 to 29 October 2023. EPA/ADI WEDA
A model presents a creation by Indonesian fashion brand Artkea Stripes x IKYK during the Jakarta Fashion Week 2024 in Jakarta, Indonesia, 26 October 2023. The fashion event runs from 23 to 29 October 2023. EPA/ADI WEDA

Fierce rivals Shein and PDD Holdings-owned Temu have applied to end their legal fights with each other in the US, documents show, marking a truce even as a global market share battle between the low-price online platforms heats up.
Joint declarations were filed to courts in Chicago and Boston by lawyers representing the companies and their subsidiaries, requesting that two legal cases be dismissed "without prejudice" by their judges, Reuters reported.
The filings did not contain details on why they had decided to drop their complaints or whether any settlement had been made. Neither firm immediately responded to a request for comment on the filings on Friday.
Shein's lawsuit against Temu, filed last December in the US District Court for the Northern District of Illinois, alleged that Temu told social media influencers to make disparaging remarks about the fast-fashion retailer, and tricked customers into downloading the Temu app using "imposter" social media accounts.
In July, Temu filed its own lawsuit in Boston federal court, accusing Shein of violating US antitrust law in its dealings with clothing manufacturers.
Temu's complaint alleged Shein "forces manufacturers to sign loyalty oaths certifying that they will not do business with Temu."
In previous statements, both firms denied any wrongdoing in the cases.
The two companies have shaken up the global retailing landscape with an ultra-fast fashion, low-price shopping model.
Shein, founded in China, and valued at $66 billion, sells fast fashion at rock bottom prices, including dresses priced at $10 and bike shorts for around $5. The company produces clothing, mainly in China, that is sold online in the US, Europe and Asia.
Temu, whose parent company PDD Holdings also owns Chinese shopping platform Pinduoduo, similarly sells low-priced clothing but is equally well known for stocking cheap headphones and home appliances.
According to a note from HSBC analysts published this week, Temu is targeting $16 billion in gross merchandising volume (GMV) in 2023, versus consensus estimates of $11 billion.
 

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Primark Boss Marchant Resigns after 'Error of Judgment'

A Primark store is seen on Oxford Street, in London, Britain, January 16, 2023. REUTERS/Peter Nicholls/File Photo
A Primark store is seen on Oxford Street, in London, Britain, January 16, 2023. REUTERS/Peter Nicholls/File Photo
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Primark Boss Marchant Resigns after 'Error of Judgment'

A Primark store is seen on Oxford Street, in London, Britain, January 16, 2023. REUTERS/Peter Nicholls/File Photo
A Primark store is seen on Oxford Street, in London, Britain, January 16, 2023. REUTERS/Peter Nicholls/File Photo

The head of fast fashion chain Primark, Paul Marchant, has resigned with immediate effect after he admitted an "error of judgment" towards a woman in a social environment.
Parent-company Associated British Foods said in a statement on Monday that Marchant had accepted his actions fell below the standards expected, and the head of the 14 billion pound conglomerate said he was "immensely disappointed".
Primark has over 450 stores in 17 countries across Europe and the United States, with Marchant growing operating profit from about 250 million pounds to over a billion pounds during his more than 15 years in charge, Reuters reported.
Primark, founded in Ireland and has a huge presence on British high streets, contributes about half of group profit to AB Foods, which also owns major grocery, sugar, agriculture and ingredients businesses.
Shares in the parent company were trading down 3.5% on Monday morning.
"I am immensely disappointed. At ABF, we believe that high standards of integrity are essential," said CEO George Weston.
"Acting responsibly is the only way to build and manage a business over the long term. Colleagues and others must be treated with respect and dignity. Our culture has to be, and is, bigger than any one individual."
The group said that Marchant had cooperated with an investigation led by external lawyers, and acknowledged his "error of judgment".
It said he had apologized to the individual concerned, the group's board and also to his Primark colleagues and others connected to the business.
Eoin Tonge, AB Foods' finance director, will act as Primark chief executive on an interim basis working with the senior Primark management team and Primark's Strategic Advisory Board, while Joana Edwards, AB Foods' financial controller, will act as interim finance director.
"It is, indeed, a very disappointing, to say the least, end for Mr. Marchant and all at Primark and ABF, where he has overseen the development of a fine value-based retailer with strong prospects for growth," said analysts at Shore Capital.
AB Foods said the group would continue to offer support to the individual who brought this behavior to its attention.