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Everlane Secures $25 Million Loan for Next Stage of Growth

Everlane has secured a $25-million loan to support expansion over the next decade.

The California lifestyle brand received the cash infusion from global advisory, restructuring and investment firm Gordon Brothers, which provides companies undergoing transformation with short- and long-term capital investment.

Everlane chief financial officer Bill Wafford on Tuesday said the firm’s flexible approach will help it “build a better capitalized business that matches the strength of Everlane’s underlying brand.” The executive noted that the company is poised for “continued expansion as it resonates with an increasing number of consumers who are making active decisions around the effect of their purchases.”

Founded on a mantra of “radical transparency” in 2010, Everlane helped kindle consumer interest in sustainability and ethical production. Since then, the certified B Corp has committed to halving its greenhouse gas emissions by 2030, investing heavily in material sourcing, which it said is responsible for 60 percent of its GHG output. Everlane has incorporated recycled man-made fibers like polyester and nylon as well as animal-derived inputs, like leather, wool and cashmere into its line and earlier this year debuted a version of its popular Market Tote made from plant-oil-based alt-leather.

The digitally native brand also helped usher in a wave of direct-to-consumer upstarts, eventually opening 11 owned stores but eschewing wholesale retail as a means of developing a closer relationship with consumers. New research from McKinsey this week revealed that web-based DTCs, which enjoyed a heyday during the pandemic, are now being challenged by the large-scale return of physical retail. The group said that during the first quarter of this year, e-commerce-based businesses were valued “well below the rest of the industry and have since suffered while the index otherwise stabilized,” suffering under the weight of heightened digital marketing costs.

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“We have admired Everlane since its founding and understand the significant brand value the company has built,” said Gordon Brothers president of brands Tobias Nanda. “So, when presented with the opportunity to work with the team and Everlane’s sponsor, we immediately saw how our multi-asset approach to lending could be a perfect fit for all parties.”

The Boston-based group, which owns several lifestyle brands including Nicole Miller and Laura Ashley, regularly lends to companies that provide products and services, real estate, inventory, receivables, equipment and other assets. As a brand owner, it prioritizes expanding licensing and franchising agreements to bolster e-commerce, wholesale and retail partnerships.