Everlane promised radical transparency — then sold to Shein for $100M, fraction of peak

Everlane was founded in 2010 by Michael Preysman and Jesse Farmer as a direct-to-consumer brand built on 'radical transparency' — it showed customers the cost breakdown of every item and its own markup. The model resonated with consumers tired of traditional retail markup, and the brand grew rapidly. Within a decade Everlane was valued at over $2 billion, had raised significant venture capital, and became one of the defining brands of the DTC era. It expanded into womenswear, outerwear, and accessories, and by 2020 had become a staple of the ethical fashion movement.

In 2020, the brand's image was shattered when The New York Times reported allegations of anti-black behavior and union busting. Employees had attempted to unionize in late 2019, and in March 2020 — just as the union was asking for recognition — Everlane laid off 42 of 57 remote customer experience employees. Senator Bernie Sanders publicly called it 'union busting.' Former employees formed the 'Ex-Wives Club' and released a public document detailing the company's hypocrisy. The brand's moral authority was gone, and sales began to decline.

Founder Michael Preysman stepped down as CEO in 2022, and private equity firm L Catterton took majority control. By 2026, Everlane was carrying $90 million in debt and struggling to find a buyer. In May 2026, the board approved a sale to Shein, the Chinese fast-fashion giant, for $100 million — a fraction of its peak valuation. The deal was widely seen as the end of the 'radical transparency' era. Vogue called it 'a metaphor for the state of sustainable fashion in 2026.' The founders and early investors lost everything.