Fast-fashion company Shein is reportedly set to take over Everlane, an apparel brand known for its high-quality fabric and radical transparency.
According to a Sunday report shared by Puck News, Everlane is being sold to Shein by the sustainable fashion brand’s majority owner, L Catterton, for $100 million. Sources told the publication that the deal was approved Saturday.
Any holders of Everlane’s common stock are not expected to receive a payout. Specific details of the deal, including whether preferred shareholders would be compensated in cash or shares of Shein, remain unclear.
The Independent has contacted Shein and L Catterton for comment.
According to Puck News, Everlane has reportedly been carrying around $90 million in debt, with CEO Alfred Chang said to have been seeking investors to help manage it as recently as March.
Founded in 2011, Everlane specializes in modern, minimalist basics for men and women, including cotton tees, cashmere sweaters and the eco-conscious Clean Silk collection, which is produced without the use of harmful chemicals, according to the company’s website.
The brand’s sustainability plan includes “reducing natural resource consumption, minimizing waste and pollution, and prioritizing safer chemistry across [its] value chain.”
Everlane markets itself as being committed to reducing its “greenhouse gas emissions by more than 50 percent per-product by 2030” and supporting its employees by promoting fair living wages and working hours.
However, in 2019, a group of remote customer service employees attempted to unionize with the Communications Workers of America to demand better pay and benefits. The initiative was ultimately halted when Everlane laid off a large majority of those workers, and the company was accused of union-busting.
Shein’s plans to purchase Everlane came amid its ongoing legal battle with another fast-fashion brand, Temu, in London. Shein has accused Temu of “industrial scale” copyright infringement, while Temu countered that Shein used litigation to stifle competition.
The case is part of a global legal battle between the fast-growing rivals, with potential implications for platform practices, supplier relationships and the enforcement of intellectual property rights across global e-commerce.
Shein alleged that Temu used thousands of its photos to advertise copies of Shein’s own-brand clothing, to “piggy-back” on a more established competitor.
“This was an attempt to steal a march on an existing participant in the market and Temu has sought to obtain, we say, an unfair advantage,” Shein’s lawyer Benet Brandreth said.
Temu denied the allegations, and a spokesperson for the brand said that the High Court in April ruled in the company’s favor in relation to 15 of 20 sample product listings that were due to be heard at the trial, after Shein dropped that part of its case.
Additional reporting by Reuters
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