Chinese fast-fashion juggernaut Shein to buy eco-friendly Everlane in an unlikely fit

Shein, the Chinese fast-fashion retailer, will acquire Everlane, the San Francisco-based brand known for its ethically sourced and sustainable clothing. The deal was confirmed in a letter to Everlane employees from CEO Alfred Chang, obtained by The Associated Press on Friday. Everlane, founded in 2011 by Michael Preysman and Jesse Farmer, has struggled with declining sales and mounting debt, prompting the need for new ownership. Shein, founded in China in 2012 and headquartered in Singapore, has become a global leader in affordable, trend-driven fashion. The company’s acquisition of Everlane marks an unusual partnership, as Shein’s business model contrasts sharply with Everlane’s focus on sustainability and ethical production. Chang emphasized in his letter that Everlane will retain its independence and commitments to quality and sustainability, though analysts question whether Shein will fully retool Everlane’s supply chain. Everlane’s majority owner, L Catterton, began acquiring stakes in the company in September 2020, becoming its largest shareholder. Preysman stepped down as CEO in 2022, and Chang took over the role in 2024. The acquisition follows a period of challenges for Everlane, including controversies over worker treatment and competition from other eco-friendly brands like Allbirds, which rebranded as NewBird AI. Analysts suggest the deal provides Everlane with much-needed financial stability but may alienate its core customer base due to Shein’s association with fast fashion. Neil Saunders, managing director of GlobalData Retail, noted that while the acquisition could help Everlane survive, it comes with risks, including potential backlash from consumers who prioritize ethical and sustainable practices. Shein’s move into eco-friendly retail could also allow the company to diversify its brand portfolio. However, Bruce Winder, an independent retail analyst, pointed out that Everlane’s struggles highlight broader challenges in the sustainable fashion market, where transparency and affordability remain key concerns for consumers. The acquisition price was not disclosed, and Shein declined to comment on the deal. Everlane’s leadership, including Chang, will remain in place, with the company aiming to continue its sustainability efforts under new ownership.