May 17 (Reuters) – Online fast-fashion platform Shein is acquiring Everlane from majority owner L Catterton in a deal valuing the U.S.-based apparel retailer at about $100 million, Puck News reported on Sunday, citing people familiar with the matter.
Those with common stock in Everlane will not receive a payout, the report said. There was no information on whether preferred shareholders would receive cash or shares in Shein as part of the deal.Â
Reuters could not immediately verify the report. Everlane, Shein and L Catterton did not immediately respond to Reuters’ requests for comment.Â
Brands like Shein and Temu have disrupted the local retail landscape through aggressive pricing, strategic marketing, and using tax loopholes that initially gave them a competitive edge over local retailers.
Puck News reported in March that private equity firm L Catterton and Everlane Chief Executive Alfred Chang had been seeking an investor to address roughly $90 million in debt.
The private equity firm was willing to inject additional funds if a co-investor emerged, but was also open to a sale, according to the report.Â
(Reporting by Preetika Parashuraman in Bengaluru; Editing by Subhranshu Sahu)
