en.Wedoany.com Reported - Global fast-fashion online platform Shein has agreed to acquire San Francisco-based apparel brand Everlane in a deal valued at approximately $100 million. This marks Shein's latest move in brand acquisitions and a key step in accelerating its overseas market expansion and brand portfolio building amid tightening global trade conditions.
Everlane's board of directors approved the acquisition on May 16. On May 17, Everlane notified its shareholders, confirming that common stockholders will not receive any proceeds from the transaction. It remains unclear whether preferred stockholders will receive cash or Shein shares as part of the deal consideration. Everlane CEO Alfred Chang will continue to lead the brand and maintain its sustainability strategy even after the ownership change.
Founded in 2011 by Michael Preysman and Jesse Farmer in San Francisco, Everlane is known for its "Radical Transparency" ethos, publicly disclosing factory information and product cost structures, and focusing on sustainable, high-quality basics. The brand once ranked among the star entrepreneurial brands during the peak of the e-commerce boom with its direct-to-consumer (DTC) model, reaching a valuation of approximately $550 million. However, as online consumption growth slowed and operating costs continued to climb, the company's financial situation reversed. It is currently about $90 million in debt. Major shareholder L Catterton and Everlane's CEO had been seeking investors but failed to find a suitable co-investor, ultimately opting for a sale.
Shein has been highly active in brand acquisitions and investments in recent years. In August 2023, Shein acquired roughly a one-third stake in US brand management company Sparc Group, which operates brands such as Forever 21. In October of the same year, Shein acquired women's fashion brand Missguided from the UK's Frasers Group and operates it under license through a joint venture with the founder. The valuation of the Everlane acquisition represents a significant discount from its peak valuation, reflecting to some extent the market's more rational approach to DTC brand valuations.
Shein Executive Chairman Donald Tang previously proposed a plan to investors called "Supply Chain as a Service," which involves opening its Chinese manufacturing network to external brands. Analysts believe that what Shein values in this acquisition is not Everlane's revenue scale, but the trust endorsement value brought by its environmentally friendly and transparent brand symbolism—amid long-standing ESG controversies and regulatory scrutiny, Shein is attempting to lay a soft power foundation for its globalization and IPO journey through the upgrading of its brand portfolio. It is worth noting that Shein itself is undergoing a major strategic shift: after a long period of unsuccessfully seeking a listing on the London Stock Exchange, it has recently turned to the Hong Kong Stock Exchange to submit a listing application, though there is still no clear IPO timetable.
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