Shein’s purchase of Everlane faces U.S. national security review
The China-founded fast-fashion giant voluntarily initiated the review by the Committee on Foreign Investment in the U.S. after the $80 million transaction was completed in May.
U.S. authorities are scrutinizing Shein Global Holdings' acquisition of American clothing retailer Everlane, following the China-based fast-fashion company's request for approval of the $80 million deal, according to sources familiar with the situation. The investigation, initiated by the Committee on Foreign Investment in the U.S. (CFIUS), began in May after the transaction was finalized, despite the fact that companies typically seek CFIUS approval before a deal is completed.
Shein's decision to voluntarily initiate the review is considered unusual. Clearance by the CFIUS typically precludes future challenges, but the committee also has the authority to halt, reverse, or impose conditions on transactions deemed to pose a risk to U.S. national security.
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