Shein reportedly acquiring Everlane in 100 million dollar deal

Online fast fashion giant Shein is set to acquire US apparel brand Everlane from majority owner L Catterton in a deal valuing the retailer at approximately 100 million dollars, according to a report by Puck News published on Sunday, citing sources familiar with the transaction. Reuters also reported the development, citing the Puck News article.

The report stated that holders of Everlane’s common stock are unlikely to receive any payout under the deal structure. It remains unclear whether preferred shareholders will receive cash compensation or equity in the China-founded fashion platform as part of the agreement.

Debt pressures pave the way for sale

Puck News had reported in March that L Catterton and Everlane chief executive officer Alfred Chang were seeking fresh investment to help manage nearly 90 million dollars in outstanding debt.

According to the report, the private equity firm was prepared to inject additional capital if a co-investor could be secured, while simultaneously exploring a potential sale of the business. Reuters noted that Everlane, Shein and L Catterton did not immediately respond to requests for comment.

Shein and rival ultra-low-cost marketplace Temu have significantly disrupted the retail market through aggressive pricing strategies, heavy digital marketing and supply-chain efficiencies.