Shein’s Purchase of Everlane Faces US National Security Review
A review by an interagency panel led by the US Treasury Department began after the $80 million transaction was completed in May, according to the people familiar with the matter.
The US is conducting a national security review of Shein Global Holdings' purchase of American clothing retailer Everlane. According to Straits Times Business, the review by the Committee on Foreign Investment in the US, an interagency panel led by the Treasury Department, began after the $80 million transaction was completed in May.
Shein voluntarily initiated the review, which is unusual as companies typically seek approval before a transaction closes. Clearance by the Committee usually prevents future challenges but the body also has the power to block, unwind or impose conditions on transactions it determines threaten US national security.
A Shein spokesperson said the company is “committed to complying with all applicable laws and regulations in the markets where we operate”. The Treasury did not respond to a request for comment. According to Straits Times Business, Shein maintains substantial operations in China even after it moved its headquarters from there to Singapore several years ago.
Brief written by urgent.news from Business of Fashion, Straits Times Business, New Straits Times, Bloomberg — 4 reports on this story. Machine-written — may contain errors; check the original before relying on it.
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