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Sustainable fashion brand Everlane and ultra-fast-fashion giant Shein are pretty much on the opposite ends of the spectrum of ethical consumerism. They don’t appear to have a lot in common — except for the fact that they’re now owned by the same group.

According to a report from US media outlet Puck, the Chinese retail juggernaut bought out Everlane on Saturday for $100 million. The company was reportedly in around $90m of debt when the deal was finalised between Shein and Everlane owners L Catterton, likely saving it from financial collapse.

The contrast is stark. San Francisco-based Everlane prides itself on its “radical transparency”, eco-friendly practices and use of natural fibres in its clothes.

Shein is the exact opposite, having been criticised for shoddy labour practices, misrepresenting environmental initiatives and reliance on artificial materials such as virgin polyester in the pursuit of ultra-cheap t-shirts and dresses.

Prior to the sale, Everlane had faced challenges with its revenue and leadership. The brand’s sales dipped in 2022 but recovered to some degree a year later. 2022 also saw the brand’s founder Michael Preysman stepping down as CEO and being replaced by Andrea O’Donnell, who was replaced by the current CEO Alfred Chang in 2024.

While the sale might help Everlane stay afloat, it will likely leave a bad taste in the mouths of some of its most loyal customers who flock to it precisely because of its promises of ethics and responsibility.

In an email to CNN, Neil Saunders, managing director of consulting firm GlobalData, said, “Shein has the finances and patience to undertake this, but it would also need to be prepared to endure some short term pain due to customer churn. Ultimately, the deal likely saves Everlane. But that salvation comes at a price.”