BRIEF: Shein to acquire U.S. peer Everlane for $100 million
Online fast fashion retailer Shein has agreed to buy U.S. peer Everlane from private equity firm L Catterton in a deal worth about $100 million, according to a report in Puck News. The deal would mark one of the first major purchases for Shein, whose plans for an IPO have come up against repeated obstacles over the last two years.
The sale would provide fresh funds for Everlane, which has accumulated $90 million in liabilities, including a $25 million loan and a $65 million revolving credit facility, according to the report. L Catterton and Everlane chief executive Alfred Chang had been exploring a number of options to relieve the debt situation, including the introduction of a new investor or a complete sale of the company.
Under the deal, Shein will take full ownership of the company, according to the report.
Everlane was established in the early 2010s with a focus on sustainability and “radical transparency” about its pricing and sourcing practices. That approach contrasts with Shein, whose lack of transparency around its labor and sourcing practices have forced the company to abandon previous plans to list in New York and London. The company is reportedly currently aiming to list in Hong Kong.
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