Chinese fast-fashion giant Shein is acquiring Everlane, the Los Angeles-based retailer that built its brand on ethically sourced and sustainable clothing, in a deal that pairs two companies with starkly different reputations in the fashion industry and raises questions about the future of conscious consumerism.
Everlane CEO Alfred Chang confirmed the acquisition in a letter to employees obtained by the Associated Press. The purchase price was not disclosed, and Shein declined to comment.
Everlane was founded in 2011 by Michael Preysman and Jesse Farmer with a mission to produce eco-friendly, affordable clothing. The company publicized regular audits of worker pay and working conditions and its environmental impact, building a loyal following among consumers who cared about supply chain transparency. The online retailer opened its first physical store in 2017.
But the company has struggled in recent years, embroiled in controversies over worker treatment and facing mounting debt and declining sales. Majority owner L Catterton, which acquired significant stakes beginning in September 2020, also holds stakes in Boll & Branch, Etro and Birkenstock. Preysman stepped down in 2022.
“Like many brands, we’ve faced increasing pressure in a rapidly changing retail landscape,” Chang wrote. “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 said he will continue as CEO and Everlane’s leadership will remain in place. The company will operate as an independent brand within Shein’s portfolio.
Neil Saunders, managing director of GlobalData Retail, said the deal likely saves Everlane from financial distress but comes at a reputational cost. Being associated with Shein may be “somewhat jarring for core Everlane customers,” he said, given the stark contrast between Everlane’s sustainability messaging and Shein’s fast-fashion model, which has faced scrutiny over labor practices and environmental impact.
For Shein, the acquisition represents an opportunity to diversify beyond fast fashion, which faces growing challenges from Trump administration tariffs and trade restrictions on inexpensive imported clothing. However, Saunders said Shein is unlikely to overhaul Everlane’s supply chain.
“Ultimately, the deal likely saves Everlane,” Saunders said. “But that salvation comes at a price.” The deal underscores the growing trend of consolidation in the retail sector, where struggling brands seek financial backing from larger conglomerates — even when the strategic fit appears unlikely on the surface.
For the broader Los Angeles retail scene, the Shein-Everlane deal represents another marker of change in an industry already roiled by shifting consumer habits, e-commerce competition and tariff uncertainties. How Everlane’s loyal customer base responds to the new ownership will be closely watched as a test of whether sustainability-focused brands can maintain their identity within larger corporate structures.
