Shein acquires Everlane in $100m deal amid debt crisis – report
Key takeaways
- The deal brings to a close a prolonged period of financial strain for Everlane, which had accumulated $90m in liabilities, comprising a $25m loan from Gordon Brothers and a $65m asset-based revolving credit facility.
- According to the report, Shein opted for full ownership.
- A note to shareholders cited by Puck News confirmed that holders of common stock will receive nothing from the transaction.
Shein acquires Everlane in $100m deal amid debt crisis – report Shubhendu Vimal Mon, May 18, 2026 at 4:23 PM GMT+7 2 min read Chinese fashion retailer Shein is set to take over US direct-to-consumer label Everlane in a transaction worth around $100m, following board approval, Puck News reported, citing unnamed sources.
The deal brings to a close a prolonged period of financial strain for Everlane, which had accumulated $90m in liabilities, comprising a $25m loan from Gordon Brothers and a $65m asset-based revolving credit facility.
Private equity company and majority shareholder L Catterton and Everlane chief executive Alfred Chang had been exploring external investment options to address the debt burden, with L Catterton reportedly willing to accept either a co-investor or a complete buyout.