May 17 (Reuters) - Online fast-fashion platform Shein is set to acquire U.S.-based apparel retailer Everlane from its majority owner, private equity firm L Catterton, in a transaction that values Everlane at about $100 million, Puck News reported on Sunday, citing people familiar with the matter.
According to the report, holders of Everlane common stock will not receive a cash payout as part of the transaction. The report added that it was unclear whether preferred shareholders would be offered cash or Shein shares under the terms of the deal.
Reuters was unable to immediately verify the account. Everlane, Shein and L Catterton did not immediately respond to Reuters' requests for comment, the report said.
The emergence of Shein and other low-cost online competitors has been credited with reshaping the retail environment. The report noted that brands such as Shein and Temu have exerted pressure on local retailers through a combination of aggressive pricing, targeted marketing and exploitation of tax provisions that initially gave them a competitive edge.
Background reporting published by Puck News in March stated that L Catterton and Everlane Chief Executive Alfred Chang had been looking for an investor to address about $90 million in debt. At that time, the private equity owner was reportedly prepared to provide additional funding if a co-investor could be found, but it was also open to a sale of the company.
The reported acquisition, if completed, would represent a notable transaction in the apparel retail sector and for private equity ownership of consumer brands. The details disclosed so far leave several questions unresolved, notably the financial treatment of preferred equity holders and external confirmation of the reported terms.
Because the account remains unverified by independent confirmation and the parties named have not commented, material aspects of the transaction remain uncertain. Further reporting would be required to confirm definitive terms, the fate of outstanding debt, and the implications for stakeholders across the retail and private equity sectors.