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This new funding, according to the statement, will be used to “refinance existing debt and provide additional liquidity for growth initiatives as well as to pay transaction-related fees and expenses.”
Everlane was first launched in 2010 as one of the early pioneers of direct-to-consumer apparel. He built a following for what he described as a transparent supply chain that tells customers where products come from and how much they cost. Over the years, he has come under fire for corporate culture issues as well as allegations of greenwashing. Although it first launched online only, it currently has 10 locations in cities like New York, Palo Alto, Austin, and Seattle.
“Everlane has been around for a while and they have a proven track record,” said Jane Hali, CEO of retail consultancy Jane Hali and Associates.
The past few months have been a tough time for funding for many brands lately, especially as a potential recession looms. Many brands that were primarily funded by venture capital are looking to new types of funding like debt. Platoon, for example, raised $720 million in debt earlier this year.
Even before the economic downturn, many VCs began to take their eyes off the clothes. It’s a high-margin and seasonal business, which makes it very different from easily scalable tech startups. Even other retail areas seem more conducive; “When you compare [apparel] beauty or personal care, it’s night and day in terms of the level of risk you’re taking,” Deborah Benton, founder and managing partner of Willow Growth Partners, told Modern Retail last March.
Of course, Everlane is no longer a startup, so its needs are very different from start-ups. But Hali noted that while there are economic headwinds, apparel is still on the rise, citing Mastercard’s latest SpendingPulse survey.
“Clothing is still doing better than last year, and certainly better than 2019,” she said. “The house took a hit [but apparel] it’s going well. »
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