Shein is said to be closing in on a deal to purchase ethical apparel label Everlane from private equity backer L Catterton, in a transaction that would value the San Francisco-based company at roughly $100 million. People familiar with the talks said Everlane’s board signed off on the proposed sale over the weekend, marking a significant next step in negotiations.
Deal valuation and approval
Those sources reported that the agreement places Everlane’s value at about $100m. Those familiar with the talks said Everlane’s board approved the transaction over the weekend.
Shareholder impact and structure
The report noted that holders of Everlane’s common stock are not expected to receive any payout. It remains unclear whether the transaction is structured as a cash deal or whether preferred shareholders will receive compensation in the form of Shein shares.
Debt background and financing efforts
Earlier reports indicated that L Catterton, together with Everlane CEO Alfred Chang, was seeking an investor to help manage about $90m in Everlane debt. L Catterton was prepared to contribute additional funds if a partner could be found, while also remaining open to a full sale of the company. Amid these efforts, the company pursued a turnaround but continued to face growing Everlane debt, a focal point within the fashion industry as Shein acquires Everlane.
Legal notice regarding headquarters rent
Separately, The Gazetteer SF reported that Everlane’s long-term landlord initiated legal action alleging overdue rent tied to the company’s San Francisco headquarters. As of March 18, a notice was served seeking more than $51,000 in unpaid rent for offices on Folsom Street.
If completed, the Shein Everlane acquisition would bring together one of the world’s highest-volume online fashion platforms and a brand that has built its identity around ethical positioning an alignment that will be closely watched by investors, industry observers and consumers as the fast-fashion sector faces intensifying scrutiny over sourcing, labour and sustainability claims.
