Everlane, the sustainable fashion brand known for its commitment to transparency, has been acquired by the online fast fashion giant Shein. The purchase agreement was confirmed by Everlane’s CEO, Alfred Chang, who stated that Everlane will maintain its independence while continuing to prioritize sustainability and high-quality products.
The acquisition, as reported by Puck News and The New York Times, involved the sale of Everlane’s majority stake by private equity firm L Catterton to Shein. Although the financial terms were not disclosed by Everlane, reports suggest the deal valued the brand at $100 million US. In recent years, Everlane has faced challenges with declining sales and accumulated debt of $90 million US.
The news of the acquisition sparked backlash among Everlane’s loyal customers, who viewed the move as contradictory to the brand’s environmental values. Notably, Everlane gained recognition for its ethical manufacturing practices and transparent approach to sharing production details with consumers.
In contrast, Shein is known for its rapid production of thousands of new products daily at low prices, often at the expense of laborers working long hours. Previous investigations have also raised concerns about Shein selling products with high levels of toxic chemicals.
The sale of Everlane reflects a broader trend where sustainable retailers, like Allbirds and Frank and Oak, have faced challenges in the competitive fashion market. Despite consumer willingness to pay more for sustainable clothing, the allure of cheap and trendy fast fashion products remains strong.
Industry experts emphasize the need for structural changes in the fashion industry to promote sustainability. They argue that policies holding companies accountable for their environmental impact are essential to drive long-term change and reduce the industry’s carbon footprint.