SHEIN, known for it’s unrelenting supply of fast fashion has snapped up struggling Everlane for $100 million.
Everlane’s claim is to use only the best ethical factories and finest materials for a more sustainable approach to fashion that lasts. With what they describe as ‘Radical Transparency’, they informed consumers about where the materials were sourced, the and where garments were manufactured. Everlane were somewhat ahead of the curve, as all this will soon become mandatory in the EU when Product Passports come into effect – what Everlane considered radical is about to become the norm.
Putting the two together makes for somewhat strange bedfellows, but SHEIN is struggling with reputation in the US and Everlane can buy put a smattering of environmental awareness gloss on the business. SHEIN have often been critisised for lack of transparency as to the source of material and lack of insight into factory conditions where their garments are manufactured. Taking Everlane’s approach could bring them into a more up to date transparent world, which is where they’re going to have to move soon anyway.
Details of the deal are a bit sketchy as Everlane was privately held, but there’s not going to be a pay day for shareholders – we don’t know if investors will be paid off although this appears more likely – estimates are that Everlane were carrying ~$90 million in debt.
