By Kashmira Konduparty
Shein, the Chinese fast fashion giant, is said to be acquiring Everlane, the U.S.-based clothing retailer from its owner L Catterton in a deal worth $100 million, according to a report by Puck News. This deal comes as Everlane faces financial pressure and mounting debt.
Reports said shareholders holding common stock are not expected to receive payouts from the sale. It remains unclear whether preferred shareholders will receive cash, Shein shares or another form of compensation.
Everlane reportedly accumulated roughly $90 million in debt. L Catterton and Everlane CEO Alfred Chang has previously sought outside investors to stabilize the company. The private equity firm was reportedly open to either adding new investors or selling the company entirely.
READ: Allegiant Air merges with Sun Country Airlines in a $1.5 billion deal (May 14, 2026)
Everlane is a direct-to-customer American basics brand built on the principles of sustainability, ethical manufacturing and “radical transparency.” Shein, meanwhile, has faced criticism for its fast fashion waste, labor practices, environmental concerns and alleged overconsumption culture. The contrast between the two companies has sparked debate online about Everlane’s identity under Shein ownership.
The acquisition reflects Shein’s efforts to expand beyond ultra-fast fashion into established Western brands. Analysts say buying recognizable labels could help Shein strengthen legitimacy and diversify its customer base for future global expansion plans. Shein also has been exploring IPO opportunities while facing increasing regulatory scrutiny in U.S. and Europe.
READ: Byron Allen acquires BuzzFeed stake amid digital media uncertainty (May 12, 2026)
Fast fashion brands like Shein and Temu have significantly reshaped the retail market through aggressive pricing, social media driven marketing and direct shipping models. Traditional direct-to-customer brands have struggled in recent years due to rising costs, weaker online spending and tougher competition.
The reported deal highlights the changing landscape of the global fashion industry, where even brands built on sustainability and ethical branding are facing mounting economic pressure. As Shein continues expanding its influence, the acquisition could signal a broader shift in how fast-fashion companies pursue growth through established consumer brands.