Shein has agreed to acquire California-based apparel retailer Everlane, with both companies saying Everlane will continue to operate as an independent brand focused on sustainability.
The deal will see Shein, the China-founded fast-fashion giant, purchase a majority stake in Everlane from private equity firm L Catterton for an undisclosed sum, pending regulatory approvals.
Everlane, which is headquartered in San Francisco and built its reputation on "radical transparency" and ethically sourced clothing, confirmed the agreement in communication to employees and in statements to the media on Friday.
Neither company has publicly disclosed the final purchase price, though several earlier reports valued the transaction at around 100 million dollars, according to NPR.
Everlane Chief Executive Alfred Chang told employees in a letter that Everlane will "remain independent" under Shein's ownership and continue to prioritize sustainability commitments and product quality.
Chang said the deal would give the company greater stability and resources to invest in its products, innovation, and workforce amid what he described as mounting pressure in a rapidly changing retail environment. He added that he will stay on as CEO and that the existing leadership team will continue to manage the brand.
Shein said acquiring Everlane will expand its presence in the United States and give it access to a more premium, direct-to-consumer platform.
The company, which has grown rapidly by selling low-priced fashion online, has been seeking to broaden its portfolio as it prepares for potential public-market scrutiny and tighter regulatory oversight in major markets, the Los Angeles Times reported.
The Everlane deal follows years of speculation about Shein's strategy to move further into higher-priced basics and "quiet luxury" offerings.
Everlane was founded in 2011 and grew quickly with its online model, detailed cost breakdowns of items, and emphasis on sustainable materials and factories.
The brand later took on majority investment from L Catterton in 2020, but has faced financial headwinds and declining valuations in recent years. The acquisition is still subject to customary closing conditions and regulatory review, and neither Shein nor Everlane has given a target date for completion, as per Vogue.
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