Sustainable fashion brand Everlane confirms deal with Shein

The ethical American fashion brand Everlane is indeed being acquired by the Chinese fast-fashion retailer Shein, but will continue to operate independently under its current management, says CEO Alfred Chang.

Mounting pressure

The deal between the two companies, which was reported last week by U.S. media based on internal sources, has now been officially confirmed. Everlane CEO Chang informed his employees via email. “Like many other brands, we have faced increasing pressure in a rapidly changing retail landscape. This partnership allows us to remain independent and gives us the stability and resources to make a greater impact, without compromising the quality and standards that make Everlane Everlane,” he wrote.

Everlane had accumulated $90 million in debt and had been looking for a buyer or investor for some time. According to Chang, the acquisition will provide more resources for product development, innovation, and employees. He states that Everlane will remain an independent brand and will continue to meet its current sustainability commitments. He and the current management team are expected to remain in place. Analysts estimate the value of the transaction at approximately $100 million.

The transaction raised a lot of questions among fashion industry observers last week. Shein, which is not known for its sustainable and ethical business model, was said at the time to be primarily seeking to buy a more positive image through the acquisition. After all, Everlane made a name for itself with a strategy based on sustainability and transparency. The brand gave customers insight into the origin of the raw materials it uses, as well as the design and production processes and logistics, under the motto “Radical Transparency.”