Everlane, a sustainable fashion label known for its commitment to “radical transparency,” has been acquired by online fast fashion giant Shein. Everlane CEO Alfred Chang confirmed the sale in a statement issued on Friday, emphasizing that Everlane will continue to operate independently while upholding its sustainability values and dedication to top-notch quality.
The partnership with Shein opens up new opportunities for Everlane to further its vision with a wider audience, all while staying true to its core principles, as stated by Chang. Although Shein did not provide comments to CBC News regarding the acquisition, Puck News initially reported that Everlane’s board had approved the sale over the past weekend. The New York Times also reported that the deal involving private equity firm L Catterton divesting its majority stake in Everlane was sealed on Friday.
While specific financial details of the transaction were not disclosed by Everlane, reports from Puck News suggested that the deal valued Everlane at $100 million US. The company has faced challenges in recent times, experiencing declining sales and accumulating $90 million US in debt.
The news of the acquisition sparked a wave of backlash from loyal Everlane enthusiasts who viewed the move as a departure from the brand’s environmental ethos. Ken Pucker, a sustainability-focused professor at Tufts University and former COO of Timberland, expressed concern over the acquisition, highlighting the apparent contradiction of Shein’s purchase of a brand known for its sustainability efforts.
Everlane gained recognition for its ethical manufacturing practices, sustainable sourcing of materials, and pioneering “radical transparency” in disclosing production costs to consumers. In contrast, Shein is known for its rapid production of thousands of new items daily at low prices, often manufactured by laborers working long hours. Previous investigations have flagged Shein and similar retailers for selling products containing high levels of toxic chemicals.
The challenges faced by Everlane are not unique among sustainable fashion brands. Other eco-conscious retailers like Allbirds and Frank and Oak have encountered difficulties in the market, with some ultimately being sold or seeking creditor protection. Despite the struggles, established sustainable brands like Patagonia and Reformation continue to thrive.
Although consumers express a willingness to pay more for sustainable fashion, the reality often differs at the point of purchase, as cost remains a significant factor. Ethical considerations alone may not suffice to attract customers, as noted by Jess Sternberg, the owner of Free Label, a sustainable clothing brand based in Vancouver.
Sternberg emphasized the importance of factors beyond sustainability, such as product quality, fit, and inclusivity, in driving consumer choices. She acknowledged the challenges of competing with fast fashion’s speed and affordability, suggesting that smaller ethical businesses may hold the key to a truly sustainable fashion future.
Former Timberland executive Pucker highlighted the need for systemic change in the fashion industry, advocating for policies that hold companies accountable for their environmental impact. He stressed that true sustainability in fashion requires reshaping industry norms rather than relying solely on individual brand efforts.
In conclusion, the acquisition of Everlane by Shein raises concerns about the future of sustainable fashion and underscores the challenges faced by eco-conscious brands in a fast-fashion-driven market. The discussion around sustainability in fashion extends beyond individual brands to the need for broader industry reform to achieve lasting change.