© AFP / YUICHI YAMAZAKI
Reuters quoted Puck News as saying that the deal is valued at about $100 million, with Everlane common shareholders not receiving a payout, according to sources. The issue of compensation for preferred shareholders remains open.
According to the source, Everlane will continue to operate as a standalone brand and retain its identity, including its stated principles of sustainability and supply chain transparency. The company will also continue to operate physical stores in the US.
The deal gives Shein access to a more premium market segment and strengthens the company’s presence in the US. According to sources, the Everlane brand is seen as a tool to expand its audience and improve product positioning.
Note that Everlane previously faced financial difficulties and debt of about $90 million, which was a factor in the sale.
Both companies – Shein and Everlane – have not officially commented on the deal publicly.
