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Swedish textile recycler Renewcell stated Sunday it filed for chapter after failing to safe ample long-term funding to proceed operations.
The corporate launched a strategic overview in November, after it emerged that demand for its recycled uncooked materials was a lot weaker than anticipated. It managed to boost $10 million in short-term funding from traders 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 know-how to recycle used cotton textiles right into a feedstock for yarns like viscose and lyocell, was an early mover within the area and seen as a litmus check for others.
“This can be a unhappy day for the setting, our staff, our shareholders, and our different stakeholders, and it’s a testomony to the shortage of management and crucial tempo of change within the vogue trade” Renewcell board chairman Michael Berg stated in a press release.
Study extra:
What’s Blocking the Rise of Extra Sustainable Supplies?
Weaker-than-expected demand for Swedish textile recycler Renewcell’s recycled cellulose pulp has highlighted broader hurdles difficult efforts to reduce vogue’s environmental footprint.
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