Earlier this month, Gazetteer SF first reported that the millennial-coded, direct-to-consumer clothing company Everlane was in the process of getting evicted from its 2150 Folsom Street headquarters. A spokesperson for Everlane clarified that the unlawful detainer — the first step in the legal eviction process — was a “routine procedural step” in an already planned exit of their San Francisco headquarters.
New information, however, suggests that Everlane’s rental situation is more dire than the company’s statement suggested.
In addition to the overdue rent owed to Chris Hickey, owner of 2150 Folsom Street, Everlane owes more than $80,000 for its rent at neighboring 2170 Folsom Street, according to Charles Barr, landlord for that property.
Everlane occupies both spaces, which are connected via a bridge, and are jointly addressed at 2150 Folsom. The two buildings are separately owned.
Barr told Gazetteer SF that recently, rent payments have been delayed, activity in the unit had slowed down, and there was a change in the staffers he liaised with.
Prior to that, he had no issues with the company. “My business relations with Everlane has always been cordial and always been good until the past year or so,” said Barr, who has owned the building since 2019. “Then payments started to come very slow, promises weren’t kept, things just really started to slow down.”
Court filings from early April revealed that Everlane owed Barr $25,800, for one month of overdue rent. Since that filing, the number has grown to $119,817.30. The sum includes rent from March through May, annual property taxes, and late fees.
As of earlier this month, Hickey, the building owner for 2150 Folsom, requested $51,273.40, one month of past-due rent in the other building. That number is likely to grow if Everlane doesn’t pay for its April or upcoming May rent. (Hickey did not respond to a request for comment from Gazetteer SF.)
The company will exit the San Francisco headquarters by the end of May, according to a statement by Everlane representative Kenneth Loo. Questions regarding rent owed to Barr or Hickey were unanswered.
“Everlane is in active discussions with its landlords to reach a mutual resolution regarding its San Francisco offices, and we expect those discussions to conclude in the near term,” reads Everlane’s statement.
Barr said that he had offered Everlane a lease termination that would have cut their lease short without having to undergo the legal eviction process; the termination would have allowed them to move to a centralized Los Angeles office space by August, as their previous statement to Gazetteer specified.
Everlane declined to sign the offer, Barr said. Instead, he explained, he's received repeated assurances from Everlane’s chief financial officer Vince Adams with promises to pay in the near future.
