Online retailer Shein to acquire San Francisco-based Everlane
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Shein, one of the largest fast-fashion retailers in the world, is set to acquire the “quiet luxury” apparel brand Everlane, media reports said.Shein will buy Everlane from majority owner L Catterton for $100 million, according to a deal signed Saturday, Puck reported.
Everlane was once valued around $600 million at its peak in the 2010s.The acquisition signals a sharp change of course for Everlane, which has centered itself on sustainability and transparency.
Shein’s fast-fashion business model involves mass production of clothing at the cheapest price, a trend that has drawn criticism from environmentalists and labor rights activists.Climate & Environment The rise of low-cost, trendy clothing has led to criticism of waste, carbon emissions and labor exploitation, prompting new legislation.Based in San Francisco, Everlane boomed in popularity soon after its inception in 2011.
It offers refined classics such as sweaters, slacks and lounge wear through a direct-to-consumer online store.Everlane’s popularity declined after the COVID-19 pandemic and the softening of the e-commerce boom in the 2020s.
It was burdened by intense competition from other online retailers and a consumer base that prioritized cheap prices over environmental responsibility.Business A decision by President Trump to close a tariff loophole could change the landscape of online shopping, particularly for the Chinese e-commerce companies behind wildly successful sites, such as Shein and Temu.In 2024, Shein faced restructuring needs that led to a $25-million loan, Forbes reported.
Allbirds, another once-popular apparel retailer based in San Francisco, announced last month it was shifting its focus from sneakers to AI chips.Holders of Everlane common stock won’t receive a payout, Puck said, citing a note sent to shareholders Sunday morning.
It’s unclear whether preferred shareholders will rece...