According to reports from international media, including Bloomberg and Reuters, Shein is acquiring the US-based e-commerce retailer Everlane from majority owner L Catterton. The transaction values the San Francisco-based company at approximately $100 million. This valuation is significantly below the levels the company reached during the e-commerce boom.
Everlane’s board reportedly approved the deal on Saturday.
Sought Investors To Manage Debts
Everlane, known for its minimalist style, has been facing financial challenges due to slowing demand. In March, it was reported that venture capital firm L Catterton and Everlane CEO Alfred Chang were actively seeking a new investor to manage the company’s approximately $90 million in debt. L Catterton was reportedly willing to inject more capital if a co-investor was found, but was also open to a sale.
For Shein, the acquisition comes at a time when the company is expanding its business model. The company has been pressured by increased US tariffs on its core business and began last year offering its network of clothing manufacturers in China as a service to other fashion brands, in order to create new revenue streams.
Several Ongoing Processes
The acquisition takes place at a time when Shein is the subject of several other high-profile processes. As Ehandel.se previously reported, the platform is currently involved in a legal dispute with competitor Temu in London regarding copyright infringement. Simultaneously, a legal process is underway against Shein in Sweden where the e-commerce retailer Nelly accuses the company of unauthorized use of image material, and in Ireland, the company is being investigated by the data protection authority regarding the handling of customer data.
Neither Shein, Everlane, nor L Catterton have yet issued any official comments regarding the reports of the acquisition.