Investing.com -- Online fast-fashion retailer Shein has ended its contracts with Brunswick (NYSE: BC ) and FGS, two communications firms that were aiding its efforts for a London initial public offering (IPO). A source confirmed this development on Friday, suggesting that the IPO process may not be progressing as planned.

The retailer’s business model, which involves shipping clothing directly from factories in China to global customers, is facing difficulties due to steep tariffs on Chinese goods implemented by U.S. President Donald Trump. The removal of a duty exemption on low-value ecommerce packages adds to these challenges.

Brunswick had been managing media relations for Shein, while FGS was handling government relations. Both firms’ contracts with Shein concluded on April 30 and will not be extended, according to the source. The Times was the first to report this news.

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