SHEIN acquires US apparel brand Everlane for $100M
What's the story
Chinese e-commerce giant SHEIN is reportedly acquiring US apparel retailer Everlane from its majority owner, L Catterton. The deal values the San Francisco-based company at around $100 million, according to media reports from Puck and The Information. This is a significant discount compared to the valuations it enjoyed during the peak of the e-commerce boom.
Approval details
Deal approved by Everlane board
The board of Everlane has approved the acquisition deal, Puck reported, citing a source familiar with the matter. However, it remains unclear if any cash will change hands or if preferred shareholders will receive cash or shares in SHEIN. Notably, holders of common stock won't receive a payout according to a note sent to shareholders on Sunday morning.
Business challenges
SHEIN's move amid debt issues
Everlane, known for its "quiet luxury" style favored by celebrities like Meghan Markle, has been struggling with mounting debt. The brand attempted a comeback amid these financial woes. Meanwhile, SHEIN has been exploring new revenue streams after US tariffs put additional pressure on its core business. Last year, the company started giving other fashion brands access to its apparel manufacturing network in China as a service.