The basics brand just bagged a fresh round of funding to shore up its expansion plans. The direct-to-consumer company, one of the earliest digital native startups in apparel, has secured $65 million in revolving credit and an additional $25 million loan, its financial partners announced Thursday. Modern Retail first reported the news.
The company will use this cash infusion to open more stores and develop new products, according to Michael Presyman, Everlane’s founder and executive chairman. It currently operates 10 brick-and-mortar locations in cities including New York and Los Angeles.
Everlane recently hired Mathilde Mader, a former designer at Marni and Sonia Rykiel, as its new global creative director to help turn the company into a more traditional fashion brand by releasing seasonal collections instead of product drops.
Raising debt in lieu of equity has been prevalent among venture startups this year as valuations have fallen across the board, due to macroeconomic concerns and slowing e-commerce growth.
“They have a small store footprint, so that suggests that the core operations are still challenged,” Sucharita Kodali, an e-commerce analyst at Forrester, told BoF in an email.
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