Everlane, a brand built on sustainable and ethical fashion principles, is now under the ownership of Shein, the Chinese fast-fashion leader. The acquisition aims to provide Everlane with financial stability as it navigates a challenging retail environment marked by falling revenues and increasing debt.
The deal was confirmed in a letter from Everlane’s CEO Alfred Chang to employees, highlighting that the partnership will allow the brand to maintain its independence while gaining the resources to strengthen its commitment to quality, innovation, and sustainability. Chang, who became CEO earlier this year, pledged to keep the current leadership intact and maintain Everlane’s distinct brand identity.
Founded in 2011, Everlane distinguished itself by promoting affordable, eco-friendly clothing with transparency about labor practices and environmental impact. Despite its efforts, the company struggled in recent years, facing controversies over worker treatment and a tough retail marketplace intensified by tariffs and trade restrictions affecting apparel imports.
Before Shein’s takeover, Everlane's majority stake was held by L Catterton, a private equity firm with investments in various apparel brands. Industry experts note that Shein, traditionally focused on rapid, low-cost fashion, may find limited opportunities to overhaul Everlane’s supply chain, but the acquisition could help Shein diversify beyond fast-fashion’s typical market.
While some of Everlane’s loyal customers might find the association with Shein unsettling, analysts consider the acquisition as a necessary move to keep the brand afloat amid a shifting apparel landscape. The partnership suggests an evolving strategy by Shein to expand its footprint into more sustainable and ethical fashion segments.