Shein, the Chinese fast-fashion juggernaut, has agreed to acquire Everlane, the retailer built on a promise of affordable, ethically sourced, and sustainable clothing. The deal was confirmed to Everlane employees by CEO Alfred Chang, though no purchase price has been disclosed and Shein declined to comment.
Background on Everlane
Founded in 2011 by Michael Preysman and Jesse Farmer, Everlane championed transparency, regularly publicising audits of its pay, working conditions, and environmental impact. However, the company has faced controversies in recent years regarding worker treatment, according to media reports. L Catterton began acquiring significant stakes in Everlane in September 2020, and Preysman stepped down in 2022.
Financial Struggles
The takeover arrives as Everlane struggles with declining sales and mounting debt, according to Neil Saunders, managing director of GlobalData Retail. He noted that the company needs new ownership to survive, and Shein can provide financial stability. Shein can also establish a presence outside fast fashion through Everlane, as growth in the industry becomes more difficult due to tariffs and trade restrictions under the Trump administration.
In a letter to employees, Chang wrote: "Like many brands, we've faced increasing pressure in a rapidly changing retail landscape. This partnership allows us to remain independent, and gives us the stability and resources to make a larger impact, without compromising on the quality and standards that make Everlane, Everlane." He emphasized that Everlane will remain an independent brand, staying true to its sustainability commitments, and that he will continue as CEO with the leadership team intact.
An Unlikely Pairing
Saunders described Everlane and Shein as an "odd couple." While Shein is unlikely to completely retool Everlane's supply network, even being associated with the Shein group may be "somewhat jarring for core Everlane customers." He concluded: "Ultimately, the deal likely saves Everlane, but that salvation comes at a price."
