Shein, the global fast-fashion retailer, is set to acquire Everlane, a San Francisco-based brand known for its sustainability and ethical practices, in a $100 million deal. The acquisition, reported by Puck News and confirmed by Bloomberg, marks a significant shift for Everlane, which once boasted a $600 million valuation but has since faced financial difficulties, including $90 million in debt and potential eviction from its headquarters.
Everlane, founded in 2010, built its reputation on 'radical transparency' and eco-friendly practices, attracting high-profile supporters like Meghan Markle. Shein, by contrast, has faced criticism for its ultra-fast fashion model, massive product volumes, and environmental footprint. The deal has sparked backlash among ethical fashion advocates, who view it as a contradiction of Everlane's core values.
Shein has previously addressed allegations of poor labor conditions by investing in carbon-reducing initiatives and ending orders at factories with known problems. However, the acquisition raises questions about the future of sustainable fashion and the viability of ethical consumerism in an industry dominated by fast-fashion giants.
Everlane's decline in popularity, intensified by the COVID-19 pandemic and increased competition, has led to its current financial struggles. The acquisition by Shein, which has also faced restructuring challenges, signals a broader trend in the fashion industry where sustainability and profitability often clash.