Everlane founder plans new brand after Shein sale shocks him

Michael Preysman learned of Everlane’s sale to Shein only about 20 minutes before it was finalized, a sharp ending for the founder who spent a decade selling the idea that ethical retail could scale without losing its soul. He later said he was disappointed by the deal, and now he is planning a new fashion venture meant to revive Everlane’s original ethos without relying on venture capital or private equity.

That reset carries unusual weight because Everlane was built around a clear anti-fast-fashion identity. Preysman and Jesse Farmer founded the company in San Francisco in 2011 on ethical sourcing, affordability and “Radical Transparency,” publishing factory information, audits and true product costs. After the Rana Plaza collapse in 2013, Everlane said it began disclosing the names and locations of its factory partners and tied its social responsibility program to International Labor Organization standards and third-party audits. The company opened its first physical store in 2017.

The sale to Shein, which Everlane CEO Alfred Chang confirmed in a letter to employees, punctured that positioning. The purchase price was not disclosed, but multiple reports placed Everlane’s valuation at about $100 million, a fraction of the roughly $550 million to $600 million valuation cited in 2020 when L Catterton invested $85 million in a Series F and became Everlane’s majority owner. Everlane also raised $90 million in debt financing in 2022, including a $65 million asset-based revolving credit facility and a $25 million first-in, last-out term loan, underscoring the financial strain that preceded the transaction.

Chang said the partnership with Shein would provide stability and resources while allowing Everlane to remain independent and preserve quality and standards. The company also said it was facing mounting pressure in a rapidly changing retail landscape. That rationale may satisfy lenders and operators, but it does little to soften the symbolism of an ethical-brand pioneer moving into the orbit of a fast-fashion giant often criticized for sourcing practices and ultra-low-cost production.

The backlash reflects a larger tension in modern retail: brands built on values still have to survive on margins. AP quoted analyst Bruce Winder saying transparency alone was not enough to keep consumers engaged over the long term, a reminder that mission can win attention but not always loyalty. Preysman officially stepped down from Everlane in 2022; now, with a new company in the works, he is trying to prove that the founder’s original promise can be rebuilt after ownership, capital and scale pulled the first version apart.