China's Shein Acquires Everlane in Unlikely Deal

Everlane, the online retailer known for its promises of ethically sourced and sustainable clothing, is being acquired by China's Shein, the dominant force in fast fashion. CEO Alfred Chang confirmed the deal in a letter to employees obtained by the Associated Press on Friday, though neither company disclosed the purchase price and Shein declined to comment on the transaction. Founded in 2011 by Michael Preysman and Jesse Farmer, Everlane built its brand on transparency, regularly publicizing audits of its supply chain, worker pay and environmental impact. The company opened its first physical store in 2017 but has faced controversies in recent years regarding worker treatment, according to media reports. L Catterton became Everlane's majority owner in September 2020. Chang, who took over as CEO in 2024, said the partnership will provide financial stability without compromising the company's values, emphasizing that Everlane will remain an independent brand with its current leadership in place. The acquisition comes as Everlane struggles with declining sales and mounting debt, according to Neil Saunders, managing director of GlobalData Retail, who said Shein can provide the financial lifeline the company needs to survive. Shein, which has faced increasing pressure from tariffs and trade restrictions under the Trump administration, can use Everlane to establish credibility beyond its fast-fashion roots. However, Saunders noted the pairing is unusual given Everlane's sustainability positioning and Shein's reputation as the king of fast fashion, warning that even being associated with the Shein group may be jarring for core Everlane customers.