Report: Shein to Acquire Everlane for $100M

Online fast-fashion retailer Shein is said to be acquiring Everlane, the apparel brand known for its sustainability ethos, in a deal valuing the company at $100 million, according to a report by Puck News. While the transaction has not been confirmed by either party yet, Puck reported that majority owner L Catterton’s board of directors approved the sale this past Saturday, making it very likely, according to Bloomberg. The consumer-focused private equity fund, backed by LVMH and Bernard Arnault’s family holding company, acquired a stake in 2020, when the fund led a $85 million funding round. The apparel brand was then valued at around $600 million, when it was at peak popularity.

Total Retail's Take: Everlane was one of the defining millennial-era direct-to-consumer brands, known for its sustainability-first branding and operations. Even with its strong brand awareness, the rather modest $100 million price tag for Everlane signals how difficult the economics of standalone DTC apparel have become.

As for Shein, this acquisition is proof that the retailer intends to transform itself beyond its ultra fast-fashion model. With this potential acquisition, Shein gains a trusted U.S. brand, particularly one lauded for its commitment to sustainability, an area in which the fast-fashion retailer has consistently been criticized. Furthermore, Shein inherits physical retail relationships and access to an older, higher income consumer brand.