Shein faces US national security review over Everlane acquisition

Shein’s attempt to buy American clothing brand Everlane has landed on the desk of US national security reviewers, adding yet another regulatory headache for the China-founded company in a market it desperately wants to crack. The review comes after Shein proactively sought approval for its roughly $100 million acquisition of Everlane, a deal announced in May 2026. A deal born from desperation meets geopolitical friction Everlane was not in great shape when Shein came calling. The brand, once valued at approximately $600 million, had accumulated around $90 million in liabilities. Its majority owner, private equity firm L Catterton, was looking for an exit. For Shein, the $100 million price tag represented a bargain entry into the US market’s more upscale direct-to-consumer segment. Everlane CEO Alfred Chang framed the deal as one that would preserve the brand’s independence and its commitment to sustainability and quality. Why Washington is paying attention The national security review reflects a broader pattern of US scrutiny toward Chinese-linked companies operating in American markets. Shein, which was founded in China and later relocated its headquarters to Singapore, has been n...