Shein has agreed to acquire Everlane, according to an emailed statement from Everlane CEO Alfred Chang. Buzz about a deal had swirled for days after Puck first reported the news.
The move represents the direct-to-consumer brand’s next phase, enabling global expansion and new capabilities and opportunities, Chang said. Everlane, which touts its supply chain transparency, will continue to run as an independent brand, “staying true to our longstanding brand values, sustainability commitments, and exceptional quality,” he said.
“This partnership creates incredible new possibilities to accelerate that vision and with greater reach, while staying grounded in our core principles,” he said. “This is the start of a bigger chapter for Everlane and the team behind it.”
Financial terms were not disclosed. Shein didn’t immediately return a request for comment.
These are unlikely partners, given the criticism Shein has faced over its social and environmental impacts, though the Chinese fast-fashion giant has established sustainability programs of its own.
But there are upsides for both. Taking over Everlane helps Shein expand beyond the fast-fashion arena and its value proposition, according to GlobalData Managing Director Neil Saunders.
“Everlane is not revolutionary for Shein, but it does support a narrative of having a more balanced portfolio that can be sold to potential investors during any future IPO,” he said in emailed comments.
Shein’s investment provides Everlane with financial stability at a time when its debt has grown to untenable levels, he also said.
Still, questions remain about what will happen at Everlane under Shein’s umbrella, and the tie-up could tarnish Everlane’s image among consumers who have been attracted to its sustainability pitch.
“Ultimately, the deal likely saves Everlane,” Saunders said. “But that salvation comes at a price.”
