San Francisco–born Everlane is relocating to Los Angeles after reports surfaced that the company owes $51,273.40 in overdue rent.
“As part of a broader effort to bring teams together, Everlane has made the decision to consolidate operations in Los Angeles, with a centralized office planned by August. The full organization was informed of this transition, and we are actively supporting employees through this change,” the company stated. “We’re proud of what we’ve built in San Francisco and are looking ahead to this next chapter in Los Angeles to continue building with greater alignment across the business.”
Everlane did not disclose how many San Francisco–based employees will be impacted by the move but it did share that employees “have been offered relocation support or the option to transition to remote roles.”
The announcement comes after the San Francisco Gazetteer’s reported that the “radical transparent” brand is being sued by its landlord Chris Hickey for the overdue rent. Everlane was served a three-day notice on March 18 to either settle the balance or vacate its second-floor space at 2150 Folsom Street.
Everlane signed the lease for its Folsom St. headquarter in 2014.
In a statement sent to Sourcing Journal, Everlane said the direct-to-consumer company has been in ongoing, “good faith discussions” with its landlords regarding its San Francisco office. “We can confirm the recent filing was a routine procedural step in that process and not adversarial,” the company stated.
In addition to its online operation, Everlane operates 11 stores in the U.S., including one in Los Angeles.
It’s been a tough week for millennial-centric, sustainability-focused brands that rose to prominence during the 2010 direct-to-consumer boom. Yesterday, Allbirds—valued at $4 billion in 2021—announced it would be acquired by American Exchange Group for $39 million. The footwear brand closed all its U.S. store doors earlier this year.
