Shein Acquires Everlane for $100 Million in Debt-Driven Deal
Chinese fast-fashion giant Shein has acquired US-based sustainable apparel brand Everlane for approximately $100 million, a deal driven by Everlane’s $90 million debt. Everlane will operate as an independent brand, maintaining its sustainability commitments. The acquisition marks a symbolic end to the millennial sustainable fashion era, raising concerns about greenwashing and Shein’s expansion into Western markets. Private equity firm L Catterton, Everlane’s majority owner, approved the sale.
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Why Everlane and Shein are actually a good match
Chinese fast-fashion giant Shein has acquired U.S. sustainable apparel brand Everlane for approximately $100 million, covering Everlane's $90 million debt. The deal has sparked backlash from customers and co-founder Michael Preysman, who was 'appalled' and is launching a new brand without venture capital or private equity funding. However, analysts argue Everlane had already drifted from its founding principles of quality and sustainability years before the acquisition, with complaints about declining materials, inconsistent sizing, and glued seams. Private equity firm L Catterton, which invested in 2020, is seen as prioritizing a profitable exit over brand integrity. The acquisition is viewed as an inevitable outcome of Everlane's financial struggles and strategic compromises.
Yahoo FinanceEverlane Founder Michael Preysman To Launch New Brand
Michael Preysman, co-founder of Everlane, announced the launch of a new brand following the sale of Everlane to Shein, a deal that shocked customers and sustainability advocates. Preysman was appalled by the acquisition and plans to build a brand around the same core values of radical transparency and sustainability, but this time free from venture capital and private equity ownership. He launched a waitlist at stillradical.com, which had 4,540 sign-ups as of Tuesday afternoon. The article notes that Everlane had faltered during the pandemic and was saddled with roughly $90 million in debt, leading majority owner L Catterton to seek an investor. Shein, the acquirer, is described as one of the most polluting fashion brands. Preysman's new venture aims to find a path forward informed by his learnings from the industry's successes and shortcomings over the past decade.
Forbes - BusinessShein Acquires Ethical Fashion Brand Everlane in Surprise Deal
Fast-fashion giant Shein has acquired direct-to-consumer brand Everlane, a company built on transparency and ethical production. The deal, reportedly valued at around $100 million—a steep drop from Everlane's 2020 valuation of $600 million—marks a collision of two opposing fashion philosophies. Shein, known for ultra-fast trend cycles and low prices, gains access to Everlane's ethical brand identity. Everlane gains Shein's global logistics and manufacturing scale. Everlane CEO Alfred Chang stated the partnership allows global expansion without abandoning core principles. Shein has faced criticism over labor conditions but has invested over $42 million in supplier improvements. The acquisition tests how consumers reconcile sustainability messaging with the realities of modern fashion manufacturing.
Yahoo FinanceShein strikes deal to acquire US clothing retailer Everlane
Chinese fast-fashion giant Shein has agreed to acquire US clothing retailer Everlane for approximately $100 million, according to a letter from Everlane CEO Alfred Chang to employees. The deal ends a period of financial strain for Everlane, which had accumulated $90 million in liabilities including a $25 million loan from Gordon Brothers and a $65 million asset-based revolving credit facility. Chang stated that Everlane will remain a standalone brand and continue its sustainability commitments, with current leadership staying in place. Everlane, founded in 2011, built its identity around ethical sourcing and supply chain transparency. Shein, founded in China in 2012 and now headquartered in Singapore, is known for low-cost, high-volume clothing. Private equity firm L Catterton, which took majority ownership of Everlane after founder Michael Preysman stepped down in 2022, also holds stakes in Boll & Branch, Etro, and Birkenstock.
Yahoo FinanceShein Acquires Everlane, Marking End of Millennial Sustainable Fashion Era
Fast-fashion giant Shein has acquired Everlane, a brand long associated with millennial-driven sustainability and direct-to-consumer ethics. The deal, confirmed on May 22, 2026, has shocked loyal customers and industry observers, who see it as a symbolic end to the millennial sustainable fashion dream. Everlane's CEO stated the brand will remain independent and uphold its values, but critics question whether Shein, known for poor labor practices and environmental damage, will use the acquisition for greenwashing. Everlane had reportedly taken on $90 million in debt, forcing a sale. The acquisition highlights the broader struggle of millennial brands to balance ethics with financial viability in a shifting market.
All Content from Business InsiderShein officially acquires Everlane
Chinese fast-fashion giant Shein has agreed to acquire Everlane, a sustainability-oriented direct-to-consumer apparel brand, according to an emailed statement from Everlane CEO Alfred Chang. The deal, which had been rumored for days, promises to salvage Everlane's finances as its debt has grown to untenable levels. Everlane will continue to operate as an independent brand, maintaining its sustainability commitments and quality standards. Financial terms were not disclosed. The partnership is seen as unlikely given Shein's history of criticism over social and environmental impacts, but analysts note it helps Shein expand beyond fast fashion and supports a narrative of portfolio balance for a potential future IPO. The acquisition raises questions about potential tarnishing of Everlane's image among sustainability-conscious consumers.
Retail Dive - Latest NewsShein Acquires Everlane for $100 Million in Debt-Driven Deal
Chinese ultra-fast-fashion giant Shein is acquiring San Francisco-based direct-to-consumer brand Everlane from private equity firm L Catterton for approximately $100 million. The transaction represents a steep discount from Everlane's peak valuation during the height of the DTC e-commerce cycle. Reports indicate that the deal is structured as a debt-driven exit, with Everlane carrying about $90 million in liabilities. Consequently, common stockholders will not receive any payout from the sale. The Everlane board approved the deal, marking the end of a quiet sale process led by CEO Alfred Chang. This acquisition provides Shein with a established US brand identity and access to a customer base interested in sustainability, contrasting with Shein's core business model. For L Catterton, the sale offers a partial recovery on an investment that became financially untenable due to rising customer acquisition costs and flattened growth premiums in the DTC sector. The move highlights the shifting dynamics in the fashion industry as ultra-fast-fashion giants expand their portfolios amidst regulatory pressures in Europe.
The Next WebShein Acquires US Retailer Everlane in $100 Million Deal
Chinese online fast-fashion giant Shein is acquiring US-based apparel retailer Everlane from its majority owner, private equity firm L Catterton. According to a report by Puck News, the deal values Everlane at approximately $100 million. This acquisition comes as Everlane sought an investor to address roughly $90 million in debt, with L Catterton previously open to either injecting additional funds alongside a co-investor or selling the brand entirely. The report indicates that holders of common stock in Everlane will not receive a payout, while details regarding compensation for preferred shareholders remain unclear. Neither Shein, Everlane, nor L Catterton immediately responded to requests for comment, and Reuters could not independently verify the report. This move highlights the continued expansion of Shein into the Western retail market, leveraging aggressive pricing and strategic marketing to disrupt the local landscape. The acquisition represents a significant consolidation in the apparel sector, merging Shein's rapid supply chain capabilities with Everlane's established brand presence in the United States.
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