German financial regulator BaFin is investigating Zalando over its €1.1 billion acquisition of About You, suspecting potential breaches of disclosure regulations in Zalando's 2025 financial reports. The focus is on the alleged omission of Danish billionaire Anders Holch Povlsen as a significant shareholder in both companies prior to the acquisition. Following the announcement, Zalando's shares dropped over 5%. Despite the scrutiny, Zalando claims the issue is minor, stating that all necessary details about the transaction were disclosed. As part of the acquisition's integration, Zalando anticipates annual cost savings of €100 million by 2028 and is planning to close its Erfurt logistics hub, impacting about 2,700 employees.

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German financial regulator probes Zalando over €1.1bn deal disclosure

BaFin says fashion retailer may have failed to provide information on a transaction linked to About You acquisition

Three Zalando fashion posters on a building feature models in denim, red clothing, and a polka dot dress with corresponding slogans. A person walks past. Shares in Zalando fell on Friday© Alamy

Florian Müller in Frankfurt

PublishedJune 26 2026

UpdatedJune 26 2026

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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 5 per cent on Friday morning, 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.

When Zalando launched the takeover at the end of 2024, it secured commitments for about 73 per cent of About You’s shares through binding agreements with its largest shareholders before going public with its offer.

Those investors included the German Otto Group, as well as Heartland, Povlsen’s investment company.

Povlsen is the owner and CEO of fashion retailer Bestseller — whose brands include Jack & Jones, Vero Moda and Only — and a major shareholder in UK online retailer Asos. Bestseller declined to 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.

Before Friday’s sell-off, Zalando’s shares had risen more than 40 per cent since the middle of May after it reported better than expected first-quarter earnings and highlighted early benefits from using artificial intelligence to reduce marketing and logistics costs.

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.

Zalando has said the integration of About You should generate €100mn in annual cost savings by 2028. It also plans to use About You’s expertise with influencer marketing to respond more quickly to fashion trends.

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.

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