Textile To Textile Recycler Renewcell To File For Bankruptcy
In a shocking development, textile to textile recycler Renewcell said it intends to file for bankruptcy, after failing to secure additional funding and consecutive quarters of slow sales.
The Swedish company is a pioneer in textile to textile recycling and manufactures Circulose textile pulp.
“We have been negotiating with our two largest shareholders, H&M and materials company Girindus, as well as existing lenders like BNP Paribas, European Investment Bank, Finnerva, Nordea and AB Svensk,” the company said in a press release.
“Unfortunately, it is now clear that these discussions have not resulted in a solution which would provide Renewcell with liquidity and capital to ensure its future operations” the company added.
“I regret to inform that we have been forced to take this decision to file for bankruptcy,” Renewcell Chairman Michael Berg said.
“As we have a strong belief in long-term potential, we have spent substantial time into trying to secure the necessary liquidity, capital and ownership structure to secure its future,” Berg added.
“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,” he stated.
Renewcell produces Circulose, a textile pulp made from chemically recycled cotton waste. It’s one of the first commercial scale textile-to-textile recycling plants in the world.
