Gordon Brothers Loans Everlane $25 Million
Gordon Brothers, the advisory, restructuring and investment firm, has provided Everlane Inc. with a $25 million term loan.
In its disclosure Tuesday, Gordon Brothers said the loan will help fuel Everlane’s growth and that the loan is secured by the sustainable apparel, accessories and footwear retailer’s digitally native brand and working capital assets.
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“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. “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.”
“Gordon Brothers’ flexible approach will help build a better capitalized business that matches the strength of Everlane’s underlying brand,” added Bill Wafford, the chief financial officer of Everlane. “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 — and want to look great while doing so.”
As reported by WWD last September, Everlane adopted a new direction involving injecting more fashion into the product assortment through whimsy, color and print; taking a collection approach rather than individual items; amping up storytelling around the brand, and increasing distribution through wholesale for the first time.
Among the goals cited by chief executive officer Andrea O’Donnell in the WWD interview were, for 2022, getting the women’s business back on track; for 2023, building back shoes and accessories, and in 2024 focusing on menswear.
Everlane was founded in 2010 with the mission of selling ethically made clothing with transparent pricing.
The company has faced criticisms for not being transparent enough and lack of diversity, but has been working to recruit more individuals identified as Black, Indigenous or people of color and has staged town hall meetings with employees where grievances could be aired. WWD reported that in April, Everlane released its first environmental impact report, pledging to move from 66 percent organic cotton to 100 percent by 2023, and eliminating the last 10 percent of virgin plastics from its supply chain.
Loans to companies can sometimes lead to equity investments, though in Tuesday’s disclosure there was no mention of any intent by Gordon Brothers to take a stake in Everlane. Gordon Brothers has been actively investing in brands since 2003 to help revive or reimagine them. Among other brands, Gordon Brothers owns Laura Ashley, Orsay and Nicole Miller.
Gordon Brothers provides both short- and long-term capital to clients undergoing transformation. The firm lends against and invests in brands, real estate, inventory, receivables, machinery, equipment and other assets, both together and individually, to provide clients liquidity solutions.
