Everlane, Reformation and the Cracks in "Ethical Fashion"

They launched a year apart with nearly identical pitches: shop online without the guilt. Everlane sold radical transparency about factory costs and markups. Reformation sold sustainable, vintage-inspired style with a wink. Both became the "ethical option" for a generation of shoppers, both took private equity money within months of each other in 2019 and 2020, and both saw their founders step back from day-to-day operations around the same time. Then their paths split. Today, Sammi breaks down how a public reckoning over workplace culture nearly sank Reformation in 2020, and why it recovered anyway. Meanwhile, Everlane's unraveling was quieter: leadership turnover, stagnant product, mounting debt and a liquidation loan that eventually led to Shein acquiring a majority stake in a deal that wiped out shareholders. Sammi also digs into Reformation's July 2026 IPO on the NYSE, including a $92 million loan taken out just before filing that funded a dividend to existing investors, and what that means for the public investors buying in now. Plus, why the brand whose entire pitch was "know your factory" ended up owned by one of the biggest names in fast fashion, and what Everlane founder Michael Preysman is doing next. Follow Sammi Cohen on Instagram Subscribe to the Social Currency newsletter Here's What Sammi Covers Today: 00:00 Two Brands, One Ethical Fashion Pitch 02:26 Partner Message: Bilt 02:28 Everlane's Radical Transparency Origin Story 03:59 Reformation's Vintage, Style-First Beginnings 04:38 Style First vs. Story First 04:15 The Private Equity Fork in the Road 05:20 Reformation's 2020 Cultural Reckoning 06:41 The Founder's Exit and the Aftermath 07:56 Everlane's Quiet Decline 08:29 Layoffs, Debt and Fading Relevance 08:44 Partner Message: Shopify 09:05 Shein Acquires Everlane 09:48 Reformation's Path to an IPO 10:16 The $92 Million Dividend Before Going Public 11:52 Reformation Debuts on the NYSE 12:16 What Really Keeps a Mission-Driven Brand Alive 12:38 Michael Preysman's New Brand, "Still Radical" Thanks to Our Sponsors! Bilt: joinbilt.com/socialcurrency Shopify: shopify.com/socialcurrency Learn more about your ad choices. Visit megaphone.fm/adchoices