Shein’s Acquisition of Everlane Confirmed

After nearly a week of rumors, Shein’s acquisition of Everlane (San Francisco) has been confirmed, report a variety of news sources, including The New York Times. The reported marriage of Singapore-based Shein, an ultra fast-fashion juggernaut, and sustainability-oriented Everlane had resulted in some collective head-scratching in retail circles.

The parties did not reveal the sale price, but a variety of publications put it at $100 million. The seller is L Catterton, the private equity firm backed by luxury conglomerate LVMH. Representatives from neither that firm nor Shein responded to repeated requests for comment by the Times.

Everlane, for its part, framed the acquisition as a way of expanding the brand’s global reach without impacting its allegiance to eco principles. In a statement to the newspaper, CEO Alfred Chang said that Everlane will “remain an independent brand” and keep its “sustainability commitments.”

As to the “why” of the buyout, Neil Saunders, Managing Director and Retail Analyst at GlobalData, offered this explanation to the Times: “I don’t think it’s a surprise that Everlane has been acquired. I think the brand has a lot of debt, it hasn’t been performing and I think it’s been looking for someone to buy it out. I think the surprising part is that Shein has stepped in.”

Founded in 2010 in San Franciso as an online e-tailer, Everlane championed “radical transparency,” that is, providing shoppers with information about the manufacturing costs and markups associated with its apparel. It expanded into physical retail in 2017 and now operates 11 stores. (Earlier this year, the San Francisco Business Times reported the company is moving its headquarters by August to Los Angeles – which is also where Shein’s U.S. operations are based.)