Fast-fashion giant Shein has reportedly acquired Everlane, the clothing brand known for its sustainability and transparency, for $100 million. The deal was approved on Saturday, according to a report by Puck News, with Everlane's majority owner L Catterton selling the brand.
Holders of Everlane's common stock are not expected to receive any payout. It remains unclear whether preferred shareholders will be compensated in cash or shares of Shein. Everlane has been carrying around $90 million in debt, and CEO Alfred Chang had been seeking investors as recently as March.
Everlane, founded in 2011, sells minimalist basics and markets itself on sustainability, aiming to reduce greenhouse gas emissions by 50% per product by 2030. However, the brand faced controversy in 2019 when remote customer service workers attempted to unionise, only to be laid off, leading to accusations of union-busting.
The acquisition comes as Shein is engaged in a legal battle with rival Temu in London, accusing Temu of copyright infringement. Temu has denied the allegations, and a High Court ruling in April favoured Temu on 15 of 20 sample listings after Shein dropped part of its case.
