Chinese fast-fashion juggernaut Shein to buy eco-friendly Everlane

NEW YORK

Everlane, the retailer that bucked the fast-fashion industry by promising affordable ethically sourced and sustainable clothing, is being acquired by the king of fast-fashion Shein.

A letter to Everlane employees from CEO Alfred Chang confirming the deal was obtained by The Associated Press.

Everlane was founded in 2011 with a mission to produce eco friendly and affordable clothing. The company publicized regular audits of its pay and working conditions, as well as the brand’s environmental impact. The online retailer opened its first physical store in 2017.

But the company in recent years has been embroiled in controversies surrounding treatment of its workers.

Everlane, also found that offering a more transparent look at its factories wasn’t enough for consumers, according to independent retail analyst Bruce Winder. Winder said shoppers were also seeking more affordable prices, and “the novelty wore off.”

Shein was founded in China in 2012 and become extremely popular with teens and young shoppers with $15 trendy dresses and sandals,

The takeover bid arrives at a time when Everlane is struggling.

Sales are down and debt has mounted, according to Neil Saunders, managing director of GlobalData Retail. The company needs new ownership to survive, and Shein can provide that financial stability, he said.

Shein can establish a presence outside of fast fashion through Everlane, Saunders said, as growth within the industry becomes more difficult.

Winder noted that Shein also has an opportunity to redefine its brand by creating a portfolio of eco-friendly brands like Everlane.