U.S. fashion brand Everlane is to be sold to Chinese fast-fashion company Shein.

Online media outlet Gigazine reported on May 18 that Shein has agreed to acquire Everlane for about $100 million. The deal has already been approved by the boards of both companies.

Everlane was co-founded in 2011 by Michael Preysman and Jesse Farmer. From its launch, it promoted “sustainability” and “transparency” as core values and grew quickly in the U.S. online fashion market. It drew millennial and Gen Z consumers with a direct-to-consumer strategy that cut out middlemen and a product lineup focused on high-quality basics.

Everlane later expanded its offline store presence in the United States and entered overseas markets including Japan, growing the brand’s scale. But in recent years, slower growth and worsening profitability increased its financial burden. Reports said Everlane had about $90 million in debt as of March and had been seeking ways to secure new investors.

In that process, Shein emerged as the buyer. Shein is a company that has dominated the global fast-fashion market based on an ultra-low-cost, ultra-fast production system. By contrast, Everlane has emphasized sustainability since its founding while criticising overproduction in the apparel industry, environmental issues and labor conditions, creating a symbolic contrast in this deal.

The market is paying particular attention to differences in the two companies’ brand philosophies. Shein grew on a model centered on rapid product turnover and mass production, while Everlane has sought differentiation by promoting product quality and production transparency. The industry is watching whether Shein will maintain Everlane’s brand image or reshape it to fit its own distribution strategy.

The sale also appears to have been influenced by decisions of existing investors. Investment firm L Catterton has invested in Everlane since 2020 and had maintained its position as the largest shareholder until recently. With the debt burden rising, the board and major investors accepted the sale plan, a move seen as bringing the deal to the closing stage.

The industry views the deal as part of a broader trend in which e-commerce-based global fashion companies absorb existing brand assets, rather than a simple brand acquisition. Shein has a global distribution network and production capabilities, while Everlane has a U.S. customer base and brand recognition.

So far, what has been confirmed is that Shein has agreed to acquire Everlane for about $100 million and that the deal has received board approval. Market attention is focused on how Shein will maintain or change Everlane’s brand identity and business structure.