Everlane, founded in 2011 with a mission to make eco-friendly and affordable clothing, is being acquired by Shein. A CEO letter to employees confirms the deal, while no purchase price was disclosed. Everlane previously promoted audits of pay and working conditions and highlighted its environmental impact, and it opened a physical store in 2017. The brand has faced worker-treatment controversies in recent years. L Catterton became a majority owner in 2020, and its founder stepped down in 2022. Everlane has declining sales and rising debt, and new ownership is viewed as necessary for survival. The CEO says Everlane will remain independent, with leadership staying and more investment planned in products, innovation, and staff.
"Everlane, the retailer that bucked the fast-fashion industry by promising affordable ethically sourced and sustainable clothing, is being acquired by the king of fast fashion, China's Shein. A letter to Everlane employees from CEO Alfred Chang confirming the deal was obtained by the Associated Press on Friday. Everlane didn't disclose a purchase price. Shein declined to comment."
"Like many brands, we've faced increasing pressure in a rapidly changing retail landscape, Chang wrote in the letter. This partnership allows us to remain independent, and gives us the stability and resources to make a larger impact, without compromising on the quality and standards that make Everlane, Everlane. Chang, who became CEO in 2024, wrote that the deal would enable the business to invest more in its product, innovation and staff."
"He emphasized that Everlane will remain an independent brand, staying true to its sustainability commitments. Chang said he would continue as CEO and its leadership would remain in place. The takeover bid arrives at a time when Everlane is struggling. Sales are down and debt has mounted, according to Neil Saunders, managing director of GlobalData Retail."
"The company needs new ownership to survive and Shein can provide that financial stability, he said. Shein can establish a presence outside of f"
#retail-acquisitions #sustainability-and-ethical-sourcing #fast-fashion-industry #corporate-leadership #financial-distress
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