Everlane, known for its commitment to sustainable fashion and “radical transparency,” has been acquired by online fast fashion retailer Shein. The sale agreement was confirmed in a statement from Everlane’s CEO, Alfred Chang, emphasizing that Everlane will continue to operate as an independent brand focused on sustainability and high-quality products.
The acquisition, as reported by Puck News, was approved by Everlane’s board last weekend, with the deal for private equity firm L Catterton to sell its majority stake in Everlane finalized on Friday, according to the New York Times. Although specific financial details were not disclosed, reports suggest that Everlane was valued at $100 million US, having faced challenges such as declining sales and accumulating $90 million US in debt.
The news of the acquisition sparked a wave of backlash online, with fans expressing disappointment over the perceived shift in Everlane’s environmental stance. Industry experts like Ken Pucker, a sustainability-focused professor and former COO of Timberland, highlighted the irony of Shein’s reputation for fast fashion acquiring a brand that championed ethical production and transparency in its supply chain.
Everlane’s transparency approach, which included detailing production costs and sourcing practices, set it apart in the industry. In contrast, Shein is known for its rapid production of thousands of new styles daily at low prices, often relying on intensive labor practices. Concerns have also been raised about Shein’s use of toxic chemicals in its products, as highlighted in previous investigations.
The challenges faced by sustainable brands like Everlane are not unique, as other eco-conscious retailers have struggled in a competitive market dominated by fast fashion. While some sustainable brands continue to thrive, the pressure to compete with the affordability and trend cycles of fast fashion remains a significant hurdle.
Industry experts emphasize the need for systemic change in the fashion industry to prioritize sustainability. They suggest that relying solely on consumer willingness to pay more for sustainable products may not be sufficient, and that policy changes holding companies accountable for their environmental impact are essential for lasting change.
The acquisition of Everlane by Shein serves as a reminder of the complexities within the fashion industry and the ongoing debate surrounding sustainability versus fast fashion. Despite the challenges, there is optimism that smaller businesses driven by ethics can lead the way in promoting sustainable practices and reshaping the industry for the better.