Everlane, a sustainable fashion brand known for its “radical transparency” approach, has been acquired by Shein, an online fast fashion retailer. The sale agreement was confirmed by Everlane’s CEO, Alfred Chang, emphasizing that Everlane will continue as an independent brand dedicated to sustainability and high-quality products. The partnership aims to expand the brand’s vision while adhering to its core principles.
The deal was initially reported by Puck News, indicating that the sale was approved by Everlane’s board. Although the exact date of the finalization was not disclosed, reports from the New York Times revealed that the private equity firm L Catterton completed the sale of its majority stake in Everlane on a Friday.
While the financial terms of the transaction were not disclosed by Everlane, it was estimated by Puck News to value Everlane at $100 million US. The company has faced challenges in recent years, experiencing declining sales and accumulating $90 million US in debt.
The sale sparked backlash among loyal customers who viewed the acquisition as a departure from Everlane’s sustainability ethos. The move raised concerns about the alignment of the brands’ values, with critics highlighting the contrast between Shein’s fast fashion practices and Everlane’s ethical production and transparency initiatives.
Shein is known for its rapid production of thousands of new products daily at low prices, often at the expense of ethical considerations. In contrast, Everlane has built its reputation on ethical sourcing, transparent pricing, and quality materials.
The acquisition of Everlane by Shein reflects broader challenges faced by sustainable retailers in the industry. Despite consumer interest in sustainable fashion, companies like Allbirds and Frank and Oak have encountered difficulties, with some forced to sell or seek creditor protection.
Experts suggest that the allure of cheap, fast fashion poses a significant obstacle for sustainable brands, as cost-conscious consumers may prioritize affordability over sustainability. The sale of Everlane underscores the complex dynamics between ethics, consumer behavior, and profitability in the fashion industry.
While sustainable brands continue to strive for market success, the path to sustainability may lie in structural changes to the industry. Policies that hold fashion companies accountable for their environmental impact could be essential in fostering a more sustainable fashion landscape.