Everlane, known for its commitment to sustainability and “radical transparency” approach in the fashion industry, has been acquired by the online fast fashion retailer Shein.
In a statement released by Everlane’s CEO, Alfred Chang, it was confirmed that the sale agreement had been reached between the two companies. Chang assured that Everlane will continue to operate as an independent brand, staying true to its sustainability values and focus on delivering high-quality products.
The acquisition is seen as an opportunity to expand Everlane’s vision and reach while maintaining its core principles, according to Chang’s statement. Shein, however, did not provide any comments when approached by CBC News.
Reports from Puck News indicated that Everlane’s board approved the sale last weekend, with the deal between private equity firm L Catterton and Shein’s acquisition of Everlane being finalized on Friday, as reported by The New York Times.
Although the financial terms of the acquisition were not disclosed by Everlane, Puck News estimated the deal valued Everlane at $100 million US. The company has faced challenges with declining sales and accumulated debts amounting to $90 million US in recent times.
The news of the sale sparked online backlash from loyal fans of Everlane, who expressed disappointment at the perceived shift away from the brand’s sustainability ethos. Ken Pucker, a sustainability-focused professor at Tufts University and former COO of Timberland, highlighted the irony of a sustainable brand being purchased by a company known for its fast fashion practices.
Everlane’s distinctive approach of ethical production and transparency in sharing production details with consumers set it apart in the industry. In contrast, Shein is known for its rapid production of thousands of new products daily at low prices, often criticized for labor practices and environmental impact.
The challenges faced by sustainable retailers like Everlane reflect broader industry trends, with other brands like Allbirds and Frank and Oak encountering difficulties despite initial success. The competition from fast-fashion giants like Shein poses significant obstacles for sustainable brands, especially in balancing cost and sustainability considerations.
While consumer surveys show a willingness to pay more for sustainable products, the reality often differs when making purchasing decisions. Ethical considerations alone may not suffice to attract customers, as highlighted by industry experts and brand owners. The shift towards sustainability in the fashion industry may require systemic changes and policies to hold companies accountable for their environmental impact and waste production.