Renewcell Files for Bankruptcy | BoF

Swedish textile recycler Renewcell stated Sunday it filed for chapter after failing to safe enough long-term funding to proceed operations.

The corporate launched a strategic assessment in November, after it emerged that demand for its recycled uncooked materials was a lot weaker than anticipated. It managed to raise $10 million in short-term funding from buyers and lenders (together with its largest shareholder, H&M) in December. However efforts to safe additional funding have proved unsuccessful.

The state of affairs marks a blow to efforts to introduce new, extra sustainable supplies to the market at scale. Renewcell, which developed expertise to recycle used cotton textiles right into a feedstock for yarns like viscose and lyocell, was an early mover within the house and seen as a litmus take a look at for others.

“It is a unhappy day for the atmosphere, our workers, our shareholders, and our different stakeholders, and it’s a testomony to the dearth of management and essential tempo of change within the trend business” Renewcell board chairman Michael Berg stated in an announcement.

Study extra:

What’s Blocking the Rise of More Sustainable Materials?

Weaker-than-expected demand for Swedish textile recycler Renewcell’s recycled cellulose pulp has highlighted broader hurdles difficult efforts to minimize trend’s environmental footprint.