Chinese fast-fashion giant Shein has agreed to acquire Everlane, the American retailer known for its ethically sourced and sustainable clothing, in a deal that pairs the industry’s most aggressive volume producer with one of its most eco-conscious brands.

Everlane CEO Alfred Chang confirmed the acquisition in a letter to employees obtained by the Associated Press. The purchase price was not disclosed, and Shein declined to comment. Chang will remain as CEO, and the brand’s leadership team will stay in place. He emphasized that Everlane will operate independently and maintain its sustainability commitments.

“Like many brands, we’ve faced increasing pressure in a rapidly changing retail landscape,” Chang wrote. “This partnership allows us to remain independent, and gives us the stability and resources to make a larger impact, without compromising on the quality and standards that make Everlane, Everlane.”

Everlane was founded in 2011 by Michael Preysman and Jesse Farmer with a mission to produce affordable, ethically sourced and sustainable clothing. The company publicized regular audits of its pay and working conditions. But in recent years, the brand has struggled with declining sales and mounting debt, according to Neil Saunders, managing director of GlobalData Retail.

For Shein, the deal offers a path beyond fast fashion as growth in that segment slows and trade restrictions under the Trump administration have upended imports of inexpensive clothing. For Everlane, Shein’s deep pockets provide the financial stability the brand needs to survive.

The pairing is an unlikely one, Saunders noted. Shein is unlikely to retool Everlane’s supply network, but even being associated with the fast-fashion group may prove jarring for core Everlane customers. “Ultimately, the deal likely saves Everlane,” Saunders said. “But that salvation comes at a price.”

The acquisition has particular relevance in South Florida, where Everlane operates a retail presence and where the fashion industry has increasingly intersected with the region’s international trade corridors. Shein has been expanding its U.S. distribution operations in the Southeast, and the deal could signal further investment in the region’s logistics infrastructure.

Source: NBC Miami | Business of Miami