Renewcell’s transformation marks a significant shift in the textile recycling sector, following its recent acquisition by Altor.
- The company, once celebrated for its sustainable textile innovation, faced bankruptcy earlier this year due to financial challenges.
- Altor’s acquisition includes Renewcell’s intellectual property and Sundsvall production site, aiming to bolster its global presence as Circulose.
- Key stakeholders like Mango and Zalando expressed their support for Circulose, emphasising its role in sustainable fashion.
- Altor and Circulose’s leadership are committed to advancing circular solutions in the textile industry, replacing virgin materials.
Renewcell, revered for pioneering sustainable textile innovation, faced financial hurdles, leading to its bankruptcy declaration in February at the Stockholm District Court. Despite its acclaim, securing the necessary financing proved elusive, culminating in the sale of its production facility in Kristinehamn.
Continuing its efforts, the company’s remaining assets have now been acquired by the Swedish investment firm Altor. These assets encompass Renewcell’s intellectual property and the production site located in Sundsvall, Sweden. With Altor’s backing, Renewcell has been rebranded as Circulose, a nod to its flagship product made from recycled textiles.
Altor’s acquisition reflects a strategic move to expand Circulose’s influence on a global scale. The investment details remain undisclosed, yet the commitment to enhance Circulose’s capabilities is clear. Circulose CEO Magnus Lundmark reiterated Altor’s intent to harness their resources to secure a robust future for the company and the wider textile industry.
Notably, fashion giants Mango and Zalando have welcomed this development. Mango’s Head of Sustainability, Andres Fernandez, expressed enthusiasm for maintaining their collaboration with Circulose, which aligns with the brand’s circular design goals. Zalando’s VP of Sustainability, Pascal Brun, also expressed support for Circulose, highlighting their shared vision of integrating circular materials into the fashion marketplace.
Altor principal Clara Zverina encapsulated the challenge and opportunity this acquisition presents, especially in scaling circular solutions to supplant virgin materials like cotton and man-made cellulosic fibres. Her comments underscore a commitment to unlocking Circulose’s potential in partnership with key stakeholders throughout the value chain.
Altor’s acquisition of Renewcell’s assets marks a pivotal step in advancing sustainable textile solutions through Circulose.
