Shein, the Chinese fast-fashion giant, is acquiring Everlane, the Los Angeles-based retailer that built its brand on ethical sourcing and sustainability — a pairing that has left industry observers and loyal customers raising their eyebrows.

A letter to Everlane employees from CEO Alfred Chang confirming the deal was obtained by The Associated Press on Friday. Everlane didn’t disclose a purchase price. Shein declined to comment.

Everlane was founded in 2011 by Michael Preysman and Jesse Farmer with a mission to produce eco-friendly and affordable clothing. The company publicized regular audits of its pay and working conditions, as well as the brand’s environmental impact. The online retailer opened its first physical store in 2017.

Why Everlane Needed a Buyer

The company has struggled in recent years. L Catterton began acquiring significant stakes in Everlane in September 2020, becoming its majority owner. Preysman officially stepped down in 2022.

“Like many brands, we’ve faced increasing pressure in a rapidly changing retail landscape,” Chang wrote in the letter. “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.”

Neil Saunders, managing director of GlobalData Retail, said the deal likely saves Everlane — but at a cost. The company needs new ownership to survive and Shein can provide that financial stability.

Shein, meanwhile, can establish a presence outside of fast fashion through Everlane, as growth within the industry becomes more difficult. Tariffs and trade restrictions under the Trump administration have upended imports of the inexpensive clothing that dominates fast fashion.

The Odd Couple of Retail

But Everlane and Shein are an odd couple, Saunders noted. Shein is unlikely to completely retool Everlane’s supply network, but even being associated with the Shein group may be “somewhat jarring for core Everlane customers.”

Chang said he will continue as CEO and the brand’s leadership will remain in place. For more on Los Angeles business and the retail economy, visit Business of Los Angeles.

Photo by Clark Douglas on Unsplash