New reports reveal that global fast-fashion platform SHEIN is buying U.S. apparel retailer Everlane in a deal valued at around $100 million. Private equity firm L Catterton, Everlane’s majority owner, is selling the brand after it racked up roughly $90 million in debt. Now, SHEIN is using the purchase to improve its image in the U.S., where it has long faced public backlash and legal pressure.
Claim 55% Off TipRanks
Forget margin or options. Here's how the pros trade AMZNEverlane Board Signs Off on SHEIN Takeover
Sources familiar with the matter said that Everlane’s board approved SHEIN’s acquisition offer on May 16. According to a note sent on May 17, 2026, the retailer’s common-stock shareholders will receive no payout from the sale.
It is also unclear whether preferred shareholders will get cash or SHEIN shares as part of the deal. Notably, reports from March 2026 said L Catterton and Everlane CEO Alfred Chang were seeking an investor to help manage the brand’s massive debt.
The private equity firm was open to putting in more funds if a co-investor came on board, but was also willing to sell outright. However, as no co-investor emerged, L Catterton decided to proceed with a full sale to SHEIN.
SHEIN Expands Reach Through Brand Acquisitions
The Everlane deal fits SHEIN’s broader push to grow beyond its own label. SHEIN will be able to buy the legitimacy it cannot quickly build by using Everlane’s reputation for transparency as a shortcut to enter the U.S. market more deeply.
In a letter to investors, executive chairman Donald Tang outlined a plan to open SHEIN’s manufacturing network to outside brands, a model he called “supply chain as a service.”
This is not SHEIN’s first move in that direction. In October 2023, the fashion firm bought the U.K. women’s brand Missguided from (GB:FRAS) and licensed it through a joint venture with founder Nitin Passi.
In August of the same year, SHEIN also acquired a roughly one-third stake in Sparc Group, the operator of Forever 21. This placed Forever 21 products on SHEIN’s platform and also allowed in-store pop-ups.
Is it Good to Invest in Retail Stocks?
Since SHEIN remains a private company, investors seeking exposure to the retail market can look to publicly traded names like Amazon (AMZN), Alibaba (BABA), and Walmart (WMT). Wall Street analysts tracked on the TipRanks Stocks Comparison Center rate these select retail stocks as Strong Buys. Based on their 12-month average price targets, BABA has the highest projected upside of 43.22%, followed by AMZN at 20.48%, and WMT at 6.47%.
