Overview
- Everlane confirmed on Friday that it reached an agreement to be acquired by Shein and said CEO Alfred Chang will remain in place while the brand will operate independently.
- Reports value the transaction at about $100 million and say L Catterton approved the sale to clear roughly $90 million of Everlane debt, with some accounts reporting that common shareholders will not receive a payout.
- Sources say Shein plans to invest in Everlane’s growth and keep its physical stores open for now while offering access to Shein’s manufacturing and distribution capabilities.
- The deal prompted sharp public backlash from Everlane customers who view the sale as a reversal of the brand’s sustainability ethos, and it follows prior reputation and operational setbacks at Everlane including layoffs and union controversies.
- Industry analysts say the sale reflects a wider consolidation in retail as sustainability‑branded companies face falling valuations and fast‑fashion platforms seek Western brand assets to diversify their offerings.