Dive Brief:
- Demonstrating support for sustainability-minded retail, the global restructuring and investment firm Gordon Brothers announced it has provided a $25 million term loan for direct-to-consumer brand Everlane, according to a Tuesday press release shared with Retail Dive.
- The loan will help to support the brand’s growth, per the release.
- Gordon Brothers also owns brands such as Laura Ashley and Nicole Miller, and has worked with other clients such as Brooks Brothers and Toys R Us.
Dive Insight:
Gordon Brothers said the chance to support Everlane’s expansion was a "perfect fit."
“We have admired Everlane since its founding and understand the significant brand value the company has built,” Tobias Nanda, president of brands at Gordon Brothers, said in a statement.
Despite the boom of e-commerce during the onset of the COVID-19 pandemic, not all predominantly digital brands have had an easy ride. As such, several DTC companies like Peloton and Purple have been shuffling their C-suites as part of turnaround plans. Last September, Everlane founder and CEO Michael Preysman stepped down, passing on the chief role to former Ugg executive Andrea O’Donnell on Jan.1 of 2022.
In 2021, the brand also took on both a new chief marketing officer and global creative director who came from Nike.
DTC brands are increasingly focused on sustainability and transparency with consumers, but the entrance into physical retail along with other considerations — such as material sourcing and supply chain logistics — make that difficult to do as companies scale.
Nonetheless, Everlane appears confident about its potential growth while maintaining its sustainability goals.
“Gordon Brothers’ flexible approach will help build a better capitalized business that matches the strength of Everlane’s underlying brand,” Bill Wafford, chief financial officer of Everlane, said in a statement. “Everlane 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.”
