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German financial watchdog BaFin has opened an investigation into Zalando’s 2025 financial accounts, claiming the online retailer may have breached its disclosure rules.
The regulator said it had “concrete indications” that Europe’s largest online fashion retailer may have failed to disclose information on a related-party transaction linked to its €1.1bn acquisition of rival About You last year.
Zalando, whose shares fell more than 8 per cent in early trading on Friday, said it was co-operating closely with BaFin.
Two people familiar with the situation said the review centred on Zalando’s failure to disclose in its 2025 annual report that Danish billionaire Anders Holch Povlsen was a significant shareholder in both Zalando and About You before the takeover.
Povlsen has been contacted for comment.
Zalando said the issue was “purely formal and immaterial”, relating to notes to the accounts. It added that all relevant information on the takeover, including the parties involved, the transaction structure and the purchase price, had already been made public as part of the takeover offer.
The investigation comes as Zalando integrates About You, after a deal aimed at gaining the retailer greater scale to compete with fast-growing Chinese rivals such as Shein. The company has also announced plans to close its logistics hub in Erfurt, affecting about 2,700 employees, as part of a broader effort to streamline its logistics network and cut costs.
