Direct-to-consumer (D2C) apparel seller. Everlane It has reportedly been sold to the fast-fashion-focused e-commerce giant Shane.
The deal values Everlane at $100 million and was approved Saturday (May 16) by Everlane’s board of directors, according to Sunday (May 17). a report Powered by the news website owned and operated by Bock Journalists.
Everlane and its parent investment management company L CattertonL Catterron was looking for an investor to help settle nearly $90 million in debt, although L Catterron was also open to an acquisition, the report said.
Neither L Catterton nor Shein responded to PYMNTS’ request for comment.
The Bock report described the deal as “somewhat cynical and shameful” for Everlane, as the company was founded on principles of sustainability and “radical transparency” in everything from factories to pricing.
Everlane made an early bid to become Gap’s millennial solution, but struggled to find its footing after the pandemic, the report said.
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separate a report Everlane was facing backlash from its fans for selling itself to Shein, which has faced repeated allegations of forced labor, design theft, and lackluster environmental practices, the Philadelphia Inquirer said Monday (May 18). A He studies by Yale University describing the company as “fast fashion’s biggest polluter”.
Still another a report From Bloomberg News noted that the acquisition came weeks later All birdsanother high-profile D2C retailer, switched business plans before it was scheduled to close.
The shoe company said it would do so transmission to a “fully integrated, native AI GPU-as-a-Service (GPUaaS) solution provider” known as NewBird AI.
The company’s footwear business has been sold to American Exchange Group, “which intends to continue to build on the Allbirds legacy,” the company said in a news release. Earlier in the year, the company said it would close the remainder of its full-priced stores in the United States to focus on its e-commerce platform, wholesale partnerships and international distribution.
It’s part of a larger trend among D2C companies Reducing its brick-and-mortar footprint amid rising costs, PYMNTS reported in January.
