Shein is close to acquiring American clothing company Everlane for approximately $100 million, in a move approved by the company’s board of directors. This way, it gains a brand that became popular for its minimalist aesthetic.
Read: H&M: How Shein’s dominance is reshaping the clothing market balance
What the Shein & Everlane agreement includes
According to Puck News, the deal involves acquiring the company from L Catterton, which is Everlane’s main shareholder. According to the same sources, Everlane was seeking an investor for loans of approximately $90 million.
Everlane’s trajectory was affected by the slowdown in e-commerce after the pandemic, rising costs, and intensified competition in the fashion industry. Everlane’s board of directors reportedly approved the deal on Saturday, May 16. Reuters reports that Everlane’s common shareholders will not receive compensation from the agreement.
For Shein, the acquisition signals an expansion move. The Chinese group has been identified with the fast fashion model, while Everlane is associated with more conscious consumption. This development highlights the pressures facing several companies from the online retail generation, as well as major platforms’ efforts to strengthen their presence.
