Renewcell, a Swedish textile recycling company, shocked the sustainable fashion industry in February when it filed for bankruptcy. The remaining assets of Renewcell have now been purchased by Stockholm-based investment firm Altor for an unknown amount, reported Vogue.
The company Renewcell is renaming itself after its breakthrough product, Circulose, which is generated from recycled cotton clothing and takes the place of wood pulp, which is often used to make artificial cellulosic fibers like viscose. The material has been tested by companies such as Ganni, Levi's, Tommy Hilfiger parent PVH, and Inditex-owned Zara since it began production in 2019. Among its biggest investors were Girindus, a Swedish investment business, and H&M.
According to a statement from Altor principal Clara Zverina, "We don't back down from a challenge and this one is worth taking." "For the patented technology's uniqueness as well as the pressing need to scale up circular solutions for the whole textile and fashion industry, especially to replace MMCF (man-made cellulosic fibers) and virgin cotton." We're committed to working in tandem with important players at every stage of the value chain to fully realize Circulose's potential. The company's investment holdings include anything from the Swedish fashion label Toteme to the alternative steel manufacturer H2 Green Steel.
When Renewcell went public in November 2020, many people questioned if the firm was prepared. When Renewcell made its debut on Nasdaq First North, its share price dropped by 77% by October 2023, from its offering price of SEK 76 ($7.26 at the current currency rate) per share. It declared bankruptcy in November after failing to finish a planned strategic review. In a statement at the time, the firm claimed that despite "well-advanced negotiations" with shareholders, it had not been able to acquire enough funding.
Upon establishing its production plant in Ortviken, Sweden, in 2022, the business aimed to be among the pioneers of next-generation material enterprises to achieve commercialization. The business claimed that 120,000 tonnes of Circulose a year, or more than half a billion T-shirts, could be produced at the plant. Renewcell's chief commercial officer, Tricia Carey, told Vogue Business shortly after the firm filed for bankruptcy, stating that it had enough pulp and fiber produced to sustain its brand partners for the next 18 to 24 months. According to Circulose, its brand partners have been working on innovations ever since the company filed for bankruptcy, and this stock is already on the market.
Despite all of its drawbacks, Renewcell was regarded as a leader in next-generation materials. Many viewed its demise as a warning to brands. Innovation would never succeed if brands were not willing to take a risk and invest in and support inventors. It remains to be seen if the industry is prepared to back Renewcell this time around.
Magnus Lundmark, CEO of Circulose, stated in a statement, "We extend our deepest gratitude to our customers, partners, and stakeholders for their unwavering support and collaboration during this journey." "Together, we will keep bringing about positive change, making use of Altor's resources and experience to strengthen our positions and ensure a secure future for Circulose as well as the larger textile community". | BGNES