E-commerce giant Shein to acquire American clothing retailer Everlane

According to reports, Chinese e-commerce giant Shein is in the process of acquiring American clothing retailer Everlane from its main owner, L Catterton. The deal is said to value the San Francisco-based company at around $1 billion, significantly lower than its valuation during the e-commerce boom. The report cites an informed source who stated that the board of Everlane approved the deal last Saturday. Reportedly, according to a note sent to Everlane shareholders last Sunday morning, common stockholders will not receive any cash returns. It is currently unclear whether this deal will involve cash payments, or if preferred stockholders will ultimately receive cash or Shein shares. This deal comes just weeks after another once-promising retail startup, Allbirds, announced new business plans, with just a few days left before potential closure. These companies that quickly rose to prominence in the online shopping boom are now struggling to sustain growth as consumer demand cools. The report notes that Everlane, facing increasing debt, had tried to drive business recovery. The brand is known for its minimalist and "quiet luxury" style, and has been popular among celebrities like Meghan Markle. At the same time, it was reported in September last year that Shein had begun opening its clothing manufacturing network in China to other fashion brands as a service for external use. With the US tariff policies putting more pressure on its core business, Shein has been seeking new sources of revenue.