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Shein Poised to Buy Everlane for About $100 Million After Board Approval

The reported rescue deal reflects the squeeze on once-hyped direct-to-consumer brands.

Overview

  • Everlane’s board approved a sale Saturday valuing the brand at about $100 million, according to Bloomberg and other outlets.
  • The deal would tackle roughly $90 million in debt, including a $25 million Gordon Brothers loan and a $65 million asset-backed credit line.
  • A notice to investors said common shareholders will receive nothing, and the outcome for preferred holders has not been disclosed.
  • Shein, Everlane and majority owner L Catterton have not announced the transaction, and recent reports say they did not respond to requests for comment.
  • The news drew backlash from Everlane customers over a values clash, and the price highlights a slide from a roughly $600 million peak as Shein extends its reach into Western brands.