Shein Acquires Majority Stake in Everlane in Undisclosed Deal

The online fashion retailer Shein has acquired a majority stake in Everlane, the sustainable clothing brand, in a deal confirmed by Everlane’s chief executive on Friday. The acquisition transfers ownership from the private equity firm L Catterton to Shein, providing financial stability for the struggling Everlane while marking a significant expansion for the fast-fashion giant.

Everlane CEO Alfred Chang informed employees of the deal in a memo, stating the partnership gives the company the stability and resources to make a larger impact. He emphasized that Everlane will continue to operate as an independent brand, with its current leadership and sustainability commitments remaining intact. The purchase price was not disclosed, though earlier reports had valued the deal at approximately $100 million.

The sale concludes a period of financial difficulty for Everlane. Analysts noted the brand has been struggling with declining sales and significant debt, which reports estimated at approximately $90 million. Neil Saunders, managing director of GlobalData Retail, stated the company needs new ownership to survive and that Shein can provide that financial stability.