Shein's Everlane Acquisition Faces US National Security Review

U.S. authorities are conducting a national security review into Shein Global Holdings' acquisition of American clothing retailer Everlane. The review, led by the Committee on Foreign Investment in the U.S. (Cfius), was initiated after the $80 million transaction was completed in May, according to sources familiar with the matter.

This review adds to the growing list of regulatory challenges faced by the China-founded fast-fashion giant in the U.S. market. Notably, Shein voluntarily initiated the Cfius review, which is an unusual step as companies typically seek approval before finalizing a deal. Cfius has the authority to block, unwind, or impose conditions on transactions deemed a threat to U.S. national security.

Shein, which maintains substantial operations in China despite moving its headquarters to Singapore, stated its commitment to complying with all applicable laws and regulations. The company recently launched its initial public offering in Hong Kong, requiring approval from Chinese regulators. The U.S. remains a crucial market for Shein's sales.

The Cfius review is reportedly focused on potential national security concerns linked to Shein's acquisition of a company that handles American personal data. The outcome of this review remains uncertain, highlighting the complex regulatory environment Shein navigates in its key markets.

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committed to complying with all applicable laws and regulations in the markets where we operate