Shein could take over the US clothing retailer Everlane.
The online fast fashion giant is said to be planning to take over Everlane from the previous majority owner L Catterton, the investment company that, among other things, manages the investment and real estate businesses of the LVMH-owning Arnault family. This was reported by the news platform Puck News on Sunday, citing sources familiar with the transaction. The deal is estimated to value the retailer at approximately $100 million. Reuters also reported the development, citing the Puck News article.
According to the report, holders of Everlane common stock are not expected to receive any payout under the deal structure. It remains unclear whether preferred shareholders will receive cash compensation or a stake in the China-founded fashion platform as part of the agreement.
Debt pressure paves the way for sales
Puck News reported back in March that Everlane Chief Executive Officer (CEO) L Catterton and Alfred Chang were looking for new investments. This should address the outstanding debt of almost $90 million.
According to the report, the private equity firm was willing to provide additional capital if co-investors could be found. At the same time, a potential sale of the company was examined.
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