Altor rescues textile recycling company Renewcell

Swedish investment firm Altor has acquired the remaining assets of Swedish textile-to-textile recycling company Renewcell, which filed for bankruptcy in February.

In a statement, the new owners said they plan to ensure the company’s pioneering cotton recycling technology “continues to thrive on a global scale” by rebranding as Renewcell’s branded recycled fibre Circulose, the only material produced at scale from 100 percent textile waste, based on a closed-loop, chemical recycling process.

Magnus Lundmark, chief executive officer at Circulose, said: “We extend our deepest gratitude to our customers, partners, and stakeholders for their unwavering support and collaboration during this journey.

“Together, we will continue to drive positive change, leveraging Altor’s expertise and resources to enhance our capabilities and secure a confident future for Circulose and the broader textile community.”

Clara Zverina, principal at Altor, added: We don’t shy away from a challenge and this one is worth taking, both for the uniqueness of the patented technology and the urgency of scaling circular solutions for the entire textile and fashion industry, particularly to replace virgin cotton and MMCF.

“We are determined to partner with key stakeholders across the value chain to together unlock the potential of Circulose.”

Nicole Rycroft, executive director of the environmental organisation Canopy, which has supported Renewcell, commented: “We were confident that the phoenix would rise from the ashes. Everyone in the fashion industry has learned valuable lessons from the Renewcell experience.

“We are excited that Altor’s investment in Circulose provides all of us with a second chance. The fashion value chain is now better primed to ensure these innovations have an easier path to market adoption. There were many brands and producers that stepped up to provide the investor with confidence in proceeding. This marks a new day for circularity!”