The volatile IPO market has claimed a victim last week as fashion retailer Fat Face abandoned its planned float.

The volatile IPO market has claimed a victim last week as fashion retailer Fat Face abandoned its planned float.

Fat Face had hired banks, set out its stall to raise £110m, and beefed up its board with members including former Sainsbury’s finance boss Darren Shapland. In the event, the retailer decided that market conditions were not favourable.

There has been much talk of the eye-watering valuations over the last couple of months, and sceptics have questioned the worth of some of the retailers coming to market.

Part of the problem has been the disappointing share performance of several of the retailers to have already floated. In recent weeks, Card Factory, Ao.com, Pets at Home and Poundland have all lost value since floating.

To an extent, retailers have been responding to investor appetite. But their performance since floating means investors are now seeing potential IPOs through more critical eyes.

So while listed retailers can still provide a good return, investors are clearly questioning the opportunities on their plate.

Retail has had a good run but the window might be closing now until the post-listing performance of those businesses that have come to market becomes clearer.

No doubt some good results will come through. There are some great retailers – such as Ao.com and Poundland – whose shares have disappointed post-float but they have clear potential to deliver strong returns.

Those retailers still aiming to float will have to work much harder now, especially if their growth potential is not quite clear enough. And even if it is, they may need to rethink their plans, buckle down and try again at a later date.