Everlane, known for its sustainable fashion and commitment to transparency, has been acquired by online fast fashion giant Shein. The sale agreement was confirmed in a statement by Everlane CEO Alfred Chang, who assured that Everlane will maintain its focus on sustainability and quality under the new ownership.
The acquisition, reported by Puck News, follows the finalization of a deal for private equity firm L Catterton to sell its majority stake in Everlane to Shein. While the financial terms of the sale were not disclosed, it was reported that the deal valued Everlane at $100 million US, with the company facing financial challenges and accumulating significant debt in recent years.
The news of the acquisition sparked criticism from fans of Everlane, who viewed it as a departure from the brand’s environmental values. The move raised concerns about Shein’s fast fashion practices, which involve rapid production of thousands of new products daily at low prices, often at the expense of ethical considerations.
In contrast to Everlane’s ethical production model and transparency, Shein has been criticized for its unsustainable practices and use of toxic chemicals in its products. The acquisition highlights the challenges faced by sustainable fashion brands in a competitive market dominated by fast fashion retailers.
Other sustainable retailers, such as Allbirds and Frank and Oak, have also faced struggles in recent years, indicating the difficulties of balancing sustainability with consumer demand for affordable and trendy clothing. Despite consumer willingness to pay more for sustainable products, the reality often falls short when it comes to purchasing decisions.
The acquisition of Everlane by Shein underscores the ongoing debate surrounding sustainability in the fashion industry. While some believe that smaller businesses driven by ethics offer a more sustainable approach, others argue that systemic changes and policies are necessary to make the fashion industry more environmentally conscious and accountable for its impact.