Chinese fast-fashion retailer Shein has purchased American clothing brand Everlane from its primary investor L Catterton for approximately $100 million, according to a Sunday report from Puck News that cited sources with knowledge of the transaction.
The report indicated that holders of common stock in Everlane would not receive any payment from the acquisition. Details regarding whether preferred shareholders would obtain cash payments or Shein equity as part of the transaction were not disclosed.
Reuters was unable to independently confirm the acquisition. Representatives from Everlane, Shein, and L Catterton did not provide immediate responses to Reuters’ requests for comment.
Companies such as Shein and Temu have transformed the retail market through competitive pricing strategies, targeted marketing campaigns, and exploiting tax advantages that previously provided them with benefits over domestic retailers.
According to a March report from Puck News, private equity company L Catterton and Everlane Chief Executive Alfred Chang had been looking for an investor to help manage approximately $90 million in outstanding debt.
The private equity company was prepared to provide additional capital if a partner investor could be found, but was also considering a complete sale of the company, the report stated.
