Swedish textile recycling company Re:NewCell files for bankruptcy
Re:NewCell AB, a pioneering Swedish company in textile recycling, announced today that it has filed for bankruptcy with the Stockholm District Court. Despite extensive efforts and negotiations, the company was unable to secure sufficient funding to complete its ongoing strategic review and ensure its future operation.
The company, known for its innovative “Circulose” recycled fiber, cited a lack of necessary support from the fashion industry as a contributing factor.
Re:NewCell had engaged in advanced discussions with its key stakeholders, including major shareholders like H&M and Girindus, existing lenders, and potential new investors. However, these negotiations ultimately failed to secure the necessary capital to sustain operations.
The company’s bankruptcy filing raises concerns for its employees, shareholders, and the broader textile recycling industry. The future of the company and its Circulose technology remains uncertain while the bankruptcy process unfolds.
I regret to inform that we have been forced to take this decision to file for bankruptcy. As we have a strong belief in the company’s long-term potential, we have together with our advisors spent very substantial time and efforts into trying to secure the necessary liquidity, capital and ownership structure for the company to secure its future. As part of the negotiations, we have had intense dialogues with both current main owners, new investors and our banks, as well as other stakeholders. However, these discussions have not been successful. 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.
Michael Berg, Chairman of the Board of Directors, Re:NewCell AB
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