CFIUS Reviews Shein Acquisition of Everlane for Security Risks

The Committee on Foreign Investment in the United States is conducting a national security review of Shein Global Holdings Ltd. following its $80 million acquisition of American clothing retailer Everlane. In an unusual move, Shein voluntarily initiated the review in May after the transaction had already closed. The probe focuses on whether the company's access to the personal data of American consumers poses a national security risk.

This review coincides with a broader pattern of regulatory pressure for the fast-fashion company. The Federal Trade Commission is currently investigating Shein for potential consumer protection violations, while Texas Attorney General Ken Paxton has filed a lawsuit alleging the company sells toxic products and exposes personal data to China.

These legal challenges emerge as Shein launches an initial public offering in Hong Kong. The company continues to face international scrutiny over its ties to China and allegations regarding the use of forced labor in the Xinjiang region. Shein stated it is "committed to complying with all applicable laws and regulations in the markets where we operate."