From a focus on transparency and sustainability to the clutches of Shein. This seems to be the trajectory Everlane, an American men’s fashion brand founded in 2010 and now owned by L Catterton, is headed toward. The deal, under which Shein would acquire Everlane for approximately $100 million, was reportedly approved by the board of directors on Saturday, May 16, according to an anonymous source who spoke with The Puck. Some observers believe the move represents an attempt by Shein to improve its image, expand its offerings with high-end brands, and ward off the threat of tariffs.
Shein buys Everlane
According to several American news outlets, Shein has reportedly reached an agreement with L Catterton to acquire Everlane for approximately $100 million. The brand, founded in San Francisco by Jesse Farmer and Michael Preysman, was launched with a focus on sustainability and radical transparency, providing customers with information on the origin of the raw materials used, as well as the design, manufacturing, and logistics processes. Sales are primarily online, although over time the brand has opened 11 physical stores.
Everlane reportedly accumulated debt due to the slowdown in e-commerce and rising costs. The Puck reports that L Catterton and the brand’s CEO, Alfred Chang, had long been seeking an investor to help them eliminate approximately $90 million in debt. L Catterton, backed by French giant LVMH and the Arnault family, was willing to inject capital if another investor came forward. But, evidently, it had also considered the possibility of selling the brand.
Positioning
The deal highlights a clear contradiction, as Everlane’s positioning (as well as the values that guided its founding and growth) stand in stark contrast to Shein’s image, which has often been criticized for a lack of transparency and sustainability. And it’s no coincidence that some commentators, as Retal Detail also notes, see ulterior motives in this likely acquisition, which has not yet been confirmed by the parties. For Shein, it would be a “facade” move that would also aim to avoid Trump’s tariffs. The likely deal comes just a few weeks after Allbirds, another company that started with a focus on sustainability, changed course, transforming itself into a tech company focused on artificial intelligence and thus abandoning its initial philosophy.
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