Shein reportedly to acquire Everlane in deal valued at $100 million
In a deal of strange bedfellows, a Chinese online fast-fashion retailer is acquiring a U.S. apparel brand know for its sustainability ethos, quality fabrics, ethical practices and commitment to transparency.
Shein is acquiring direct-to-consumer brand Everlane from its majority owner, private equity firm L Catterton, in a deal that values the company at $100 million, reported Puck News. Catterton’s board of directors approved the sale this past Saturday, according to Bloomberg.
The formerly high-flying Everlane was founded in 2011 and quickly gained a reputation as a high-flying start-up. But it has struggled in recent years with mounting debt, increased costs, online competition and executive shakeups. In late 2024, the company named former PacSun executive Alfred Chang as CEO, succeeding Andrea O’Donnell, who had been in the role since 2021.
Everlane was founded as an upscale direct-to-consumer brand selling selling modern basics for men and women, with a promise of “radical transparency” in its item pricing and supply chain.
The company also touts its commitment to sustainability on its site, noting that “we’re not big on trends. We want you to wear our pieces for years, even decades, to come.” It also describes its ethical practices, noting that all of the factories it uses are given “a compliance audit to evaluate factors like fair wages, reasonable hours, and environment.”
In contrast, Shein is trend-driven and known for its extremely low prices. The company has come under repeated scrutiny over its alleged labor abuses and environmental impact.
A proposed class action in California was recently filed against Shein, accusing it of misleading shoppers into making a purchase through “fake” discounts.