Shein buys Everlane for $100 million to expand US footprint

Fast-fashion juggernaut Shein is acquiring the popular U.S.-based apparel retailer Everlane in a deal valuing the company at roughly $100 million, .

The acquisition sees Shein buying out Everlane from its majority owner, the prominent private equity firm L Catterton. Sources familiar with the matter revealed that Everlane's common stock owners will not receive a payout from the transaction. It remains unclear whether preferred shareholders will walk away with cash or equity shares in Shein as part of the buyout, News.Az reports, citing Investing.

The deal comes at a critical time for Everlane, which has reportedly been drowning in financial trouble. In March, reports surfaced that L Catterton and Everlane Chief Executive Alfred Chang were aggressively hunting for a new investor to help the brand wipe out roughly $90 million in lingering debt. While the private equity firm was initially open to co-investing alongside a partner, they ultimately opted for a full sale to the e-commerce giant.

The acquisition marks a massive strategic shift for Shein. Alongside competitors like Temu, Shein has heavily disrupted the traditional retail market through hyper-aggressive pricing, viral social media marketing, and capitalizing on tax loopholes. By absorbing Everlane—a brand originally built on the contrasting ideals of "radical transparency" and ethical, sustainable manufacturing, Shein is positioned to aggressively expand its footprint and appeal to a broader demographic in the U.S. consumer market.

News.Az 

By Aysel Mammadzada