Shein to Acquire Majority Stake in Everlane for $100 Million

Online fast-fashion retailer Shein is acquiring a majority stake in Everlane in a deal valuing the company at $100 million, according to information shared by Reuters. The transaction has not been confirmed by either party. Bloomberg reported that majority owner L Catterton’s board of directors approved the sale this past Saturday.

Everlane launched as a mission-driven company built on ethical practices, premium quality and radical transparency. Its website states it is on a mission to clean up the industry. The brand shared factory locations and production costs and claimed it had no intermediaries allowing fair pricing. It designed wardrobe staples for elevated everyday basics.

Everlane’s popularity declined after the late 2010s.

The company faced rising costs and an increasingly competitive landscape. In 2024 the company repositioned toward clean luxury. It secured a $25 million loan from Gordon Brothers and a $65 million asset-based revolving credit facility. L Catterton acquired a stake in 2020 when it led an $85 million funding round that valued Everlane at around $600 million.

Shein produces an estimated 1 billion items per day. Over 99 percent of its emissions come from its supply chain.

Shein has acquired stakes in other distressed fashion brands including Forever 21 and Missguided. The company has shown interest in Topshop. The acquisition would allow Shein to absorb customer data, product preference data and geographic preference data. Hundreds of social media users expressed shock and disappointment following rumors of the sale.