Textile Recycling Pioneer Renewcell is Filing for Bankruptcy
Facing lower than expected demand for its recycled cellulose pulp, Swedish textile recycling innovator Renewcell will file a bankruptcy application in the Stockholm District Court.
Photo: Circulose Shredded Textile Waste, courtesy of Renewcell
On Sunday, Swedish textile recycler Renewcell announced it would file for bankruptcy. Despite being one of the world's first commercial-scale textile-to-textile recycling factories and a pioneer with its CIRCULOSE® material, made from cellulosic textile waste, such as worn-out cotton clothes and production scraps, Renewcell struggled to secure adequate long-term funding due to slow sales over consecutive quarters.
Despite its role as a trailblazer and receiving $10 million in short-term funding from investors and lenders, including shareholder H&M, the company's groundbreaking efforts in creating sustainable materials were not matched by a quick enough uptake in the industry.
Renewcell's journey underscores a common struggle in the fashion industry's struggle with balancing economic and environmental sustainability. Moreover, it highlights a gap between the industry's promises and actions regarding sustainability, where cost considerations often outweigh sustainable choices, revealing a misalignment between the industry's proclaimed environmental goals and its real-world decisions.
In a statement, Renewcell's chairman, Michael Berg, expressed regret over the bankruptcy, seeing it as a missed opportunity for environmental progress and a reflection of the fashion industry's slow response to change.
“This is a sad day for the environment, our employees, our shareholders, and our other stakeholders, and it is a testament to the lack of leadership and necessary pace of change in the fashion industry”
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