Chinese fast-fashion giant Shein has agreed to purchase US clothing retailer Everlane, reported The Associated Press.

Everlane chief executive Alfred Chang, who took the helm in 2024, disclosed the transaction in a letter to employees.

“Like many brands, we've faced increasing pressure in a rapidly changing retail landscape. 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,” he wrote.

Chang said the deal would provide more resources for product development, innovation, and employees.

He added that Everlane would remain a standalone brand and continue upholding its current sustainability commitments.

He and the current leadership team are expected to remain in place.

Several media reports value the transaction at approximately $100m.

The deal will bring a prolonged period of financial strain for Everlane to an end. The company had accumulated $90m in liabilities, including a $25m loan from Gordon Brothers and a $65m asset-based revolving credit facility.

Founded in 2011 by Michael Preysman and Jesse Farmer, Everlane built its identity around “ethical” sourcing, supply chain transparency and environmental accountability, including regular third-party audits of pay, working conditions and environmental impact.

The brand moved into bricks-and-mortar retail in 2017.

Preysman stepped down in 2022, after which private equity firm L Catterton – which also holds stakes in Boll & Branch, Etro and Birkenstock – took majority ownership, having begun building a significant position in September 2020.

Shein was founded in China in 2012, growing on the back of low-cost, high-volume clothing produced through a network of Chinese factories.

The company has since relocated its headquarters to Singapore.