NEW YORK (AP) — Everlane, the San Francisco-based clothing retailer known for its commitment to ethical sourcing and sustainability, is being acquired by Chinese fast-fashion giant Shein in a deal that brings together two sharply contrasting brands in the global apparel industry.
The acquisition was confirmed in a letter to Everlane employees from chief executive Alfred Chang, which was obtained by The Associated Press on Friday. Neither company disclosed the purchase price. Shein declined to comment, while Everlane’s majority owner L Catterton did not immediately respond to requests for comment.
Founded in 2011 by Michael Preysman and Jesse Farmer, Everlane built its brand on “radical transparency,” publishing details about factory conditions, wages and environmental impact. The company later expanded into physical retail, opening its first store in 2017.
In recent years, however, the brand has faced scrutiny over labor-related controversies reported in the media, alongside increasing financial pressure in a highly competitive retail market. Industry analysts say consumer demand has shifted toward lower prices, eroding the appeal of premium ethical positioning.
Everlane’s majority owner, private equity firm L Catterton, began increasing its stake in 2020 and became the controlling shareholder. The firm also holds investments in several consumer brands including Birkenstock. Everlane founder Michael Preysman stepped down in 2022.
Shein, founded in China in 2012 and now headquartered in Singapore, has grown rapidly by offering low-cost, trend-driven apparel popular among younger consumers. The company has faced ongoing criticism over labor practices in its extensive supplier network.
In his letter to staff, Chang said the partnership would provide Everlane with financial stability while allowing it to remain operationally independent.
“Like many brands, we’ve faced increasing pressure in a rapidly changing retail landscape,” Chang wrote. “This partnership allows us to remain independent, and gives us the stability and resources to make a larger impact, without compromising on the quality and standards that make Everlane, Everlane.”
Chang, who became chief executive in 2024, said the deal would enable increased investment in product development, innovation and employees. He also said Everlane would maintain its sustainability commitments and existing leadership structure.
Analysts say the acquisition reflects broader consolidation pressures in the retail sector. Neil Saunders, managing director at GlobalData Retail, said Everlane has been struggling with declining sales and rising debt, making new ownership a likely necessity.
Shein, he added, may benefit by expanding beyond fast fashion as growth in the sector becomes more constrained amid trade restrictions and tariffs affecting low-cost imports.
Retail analyst Bruce Winder said the deal could also allow Shein to reposition itself through association with more sustainability-focused brands, although he noted the two companies represent “an odd pairing.”
Saunders warned that while the acquisition may stabilize Everlane financially, it could also unsettle its core customer base due to Shein’s reputation in fast fashion.
“Ultimately, the deal likely saves Everlane,” he said. “But that salvation comes at a price.”
Chang acknowledged internal and external concerns surrounding the acquisition, noting in his memo that the company had experienced a difficult week as details of the deal circulated in the media.
Si Venus L Peñaflor ay naging editor-in-chief ng Newsworld, isang lokal na pahayagan ng Laguna. Publisher din siya ng Daystar Gazette at Tutubi News Magazine. Siya ay isa ring pintor at doll face designer ng Ninay Dolls, ang unang Manikang Pilipino. Kasali siya sa DesignCrowd sa rank na #305 sa 640,000 graphic designers sa buong daigdig. Kasama din siya sa unang Local TV Broadcast sa Laguna na Beyond Manila. Aktibong kasapi siya ng San Pablo Jaycees Senate bilang isang JCI Senator.
- Venus L Peñaflor
- Venus L Peñaflor
- Venus L Peñaflor
- Venus L Peñaflor
