Fast-fashion company Shein is reportedly set to acquire Everlane, an apparel brand renowned for its high-quality fabrics and radical transparency. According to a Sunday report by Puck News, Everlane is being sold to Shein by its majority owner, L Catterton, for $100 million. Sources told the publication that the deal was approved on Saturday. Holders of Everlane's common stock are not expected to receive any payout. Specific details regarding whether preferred shareholders will be compensated in cash or shares of Shein remain unclear. The Independent has contacted Shein and L Catterton for comment.
Everlane's Financial Struggles
According to Puck News, Everlane has reportedly been carrying approximately $90 million in debt, with CEO Alfred Chang seeking investors to help manage it as recently as March. The $100 million purchase price comes amid these financial challenges.
Everlane's Sustainability Claims
Founded in 2011, Everlane specializes in modern, minimalist basics for men and women, including cotton tees, cashmere sweaters, and the eco-conscious Clean Silk collection, which is produced without harmful chemicals, according to the company's website. The brand's sustainability plan focuses on reducing natural resource consumption, minimizing waste and pollution, and prioritizing safer chemistry across its value chain. Everlane markets itself as committed to reducing its greenhouse gas emissions by more than 50 percent per product by 2030 and supporting employees through fair living wages and working hours.
However, in 2019, a group of remote customer service employees attempted to unionize with the Communications Workers of America to demand better pay and benefits. The initiative was halted when Everlane laid off a large majority of those workers, and the company faced accusations of union-busting.
Shein's Legal Battle with Temu
Shein's plans to purchase Everlane come amid its ongoing legal battle with another fast-fashion brand, Temu, in London. Shein has accused Temu of industrial-scale copyright infringement, while Temu countered that Shein used litigation to stifle competition. The case is part of a global legal battle between the fast-growing rivals, with potential implications for platform practices, supplier relationships, and the enforcement of intellectual property rights across global e-commerce.
Shein alleged that Temu used thousands of its photos to advertise copies of Shein's own-brand clothing, aiming to piggy-back on a more established competitor. "This was an attempt to steal a march on an existing participant in the market, and Temu has sought to obtain, we say, an unfair advantage," said Shein's lawyer, Benet Brandreth. Temu denied the allegations, and a spokesperson noted that the High Court in April ruled in the company's favor regarding 15 of 20 sample product listings that were due to be heard at trial, after Shein dropped that part of its case.
