Everlane Faces More Overdue Rent Claims

by · WWD
Everlane store in San Francisco.Smith Collection/Gado/Getty Images

Everlane may own more overdue rent than what was originally reported last month.

This week, the Gazetteer SF reported that the San Francisco–born brand owes overdue rent for 2170 Folsom Street, a neighboring property to its 2150 Folsom Street headquarters.

Gazetteer SF said court filings from early April showed that Everlane owes the landlord Charles Barr $25,800, for one month of overdue rent. The amount has ballooned to $119,817.30 since the filing, to include rent from March through May, annual property taxes and late fees.

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Though the two buildings are separately owned, Gazetteer SF says they’re connected via a bridge. Everlane reportedly occupies both spaces.

In a statement to Sourcing Journal, Everlane said it is in active discussions with its landlords to reach a mutual resolution regarding its San Francisco offices, and that it expects those discussions to conclude in the near term.

“We are not going to comment on the specific terms of ongoing negotiations,” the company stated.

In April, the “radically transparent” brand announced it is relocating to Los Angeles shortly after reports surfaced that the company owes $51,273.40 in overdue rent for 2150 Folsom Street. Everlane expects to fully vacate its San Francisco office space by end of May.

“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.”

In an interview with Gazetteer SF, Barr said rent payments have been delayed recently and that activity in the unit had slowed down. Prior to that, Barr had no issue with the brand.  

Barr added that he offered Everlane a lease termination that would have cut their lease short without having to undergo the legal eviction process, but said the company declined.

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