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German Regulator Probes Zalando Over Undisclosed Shareholder Stake
Zalando is under investigation by Germany's financial regulator for failing to disclose in its annual report that its largest shareholder also held a stake in a company the e-commerce giant acquired last year.
Germany's financial regulator, BaFin, has opened an investigation into Zalando SE over an omission in the company's annual report. The probe concerns a failure to note that Danish billionaire Anders Holch Povlsen, Zalando's largest shareholder, also held a stake in a business that Zalando purchased in 2024.
The undisclosed connection raises questions about related-party transaction disclosures. The acquisition took place last year, but the annual report did not mention Povlsen's pre-existing stake in the target firm.
Povlsen, who owns fashion group Bestseller and has substantial holdings in Zalando, is known for his investments in European e-commerce. The regulator is examining whether Zalando violated German financial reporting rules.
Zalando has not yet commented on the investigation. The company, based in Berlin, is one of Europe's leading online fashion platforms. The probe could result in fines or other penalties if non-compliance is confirmed.