Chinese e-commerce giant Shein is acquiring US apparel retailer Everlane from majority owner L Catterton in a deal valuing the company at about $100 million, Everlane's board approved the sale on May 16, 2026 [1, 2, 3, 4]. Shareholders were notified on May 17 that common stock holders will not receive a payout in the transaction [1, 3]. It remains unclear whether cash will change hands or whether preferred shareholders will receive cash or Shein shares [1, 2, 3].
Founded in 2011 by Michael Preysman and Jesse Farmer, with Preysman having since left, Everlane is known for its minimalist "quiet luxury" style and has gained popularity among celebrities such as Meghan Markle [1, 2, 3]. The company built its brand on a mission of ethical fashion, transparency, and premium quality, stating on its website, "We’re on a mission to clean up the industry. It’s a movement we’re calling Cleaner Fashion." [4]
Everlane has faced increasing financial challenges, carrying about $90 million in debt and attempting to restructure its business [2, 3, 4]. At its peak, Everlane was valued around $600 million, significantly higher than the current acquisition price [4]. L Catterton, which acquired a stake during an $85 million funding round in 2020, was the majority owner before the sale [4].
Shein, best known for its fast-fashion model and global e-commerce reach, began offering its apparel manufacturing network as a service to other brands in September 2025 [1, 2, 3]. The acquisition is viewed as ironic by some industry observers given Shein’s reputation for fast fashion and its environmental impact, which contrasts with Everlane’s ethical branding [4].
The transaction completes the latest shift in Everlane’s ownership and sets the stage for potential operational changes under Shein’s control.
