Everlane announced on Friday that it has reached an agreement to be purchased by Shein, the fast-fashion online retailer. In a statement, Everlane's CEO Alfred Chang said the brand will continue to operate independently and will maintain its publicly stated sustainability commitments as it seeks to expand globally under the new ownership.
A person familiar with the matter told Reuters that Shein has long admired Everlane and intends to use the acquisition to bolster its own reputation beyond low-cost fast-fashion. That source said Shein plans to pursue cross-selling opportunities between the two brands. The source also indicated there were multiple bidders for Everlane.
Puck News published a first report on the transaction, saying the deal values Everlane at approximately $100 million and that holders of common stock in Everlane would not receive a payout, according to that report.
Requests for comment from L Catterton, which is the majority owner of Everlane, and from Shein have not yet been answered, the article said.
The deal comes amid a period of substantial disruption in retail from fast-fashion e-commerce players. Companies such as Shein and Temu have shifted market dynamics by relying on aggressive pricing, heavy marketing, and the use of tax practices that initially provided them an advantage over some local competitors, the article noted.
According to the source, Shein plans to invest in Everlane's growth and is expected to keep the brand's physical stores open for the time being, even though brick-and-mortar retail is not central to Shein's core business model. The source added that Shein's rapid production cycles and its ability to bring new products to market quickly could support Everlane's operations.
Summary
- Everlane has agreed to be acquired by Shein but will continue to operate independently and retain its sustainability commitments, Everlane's CEO said.
- Shein aims to use Everlane to enhance its image and to create cross-selling opportunities, with the sale reportedly attracting multiple bidders.
- Puck News reported the deal values Everlane at around $100 million and noted that common-stock shareholders would not receive a payout.
Context and implications
The announcement highlights a strategic purchase by an online fast-fashion firm of a brand known for supply-chain transparency. While Shein's acquisition is framed as an opportunity to expand Everlane's global footprint, the companies involved have not provided additional comment, and certain sale details reported externally indicate that some shareholders will not receive a direct payout.