Renewcell, now rebranded as Circulose, has been acquired by Swedish investment firm Altor following its recent bankruptcy.
- The acquisition includes intellectual property and production site assets in Sundsvall while a separate facility in Kristinehamm has been sold to Biosorbe.
- Altor intends to advance Circulose on a global scale, leveraging its patented textile recycling technology.
- Key stakeholders in the fashion industry, such as Mango and Zalando, welcome this development as part of their sustainability agendas.
- Circulose’s innovative approach aims to address the urgent need for circular solutions in replacing virgin cotton and man-made fibres.
Renewcell, a pioneer in the field of textile recycling, has been acquired by Altor, a Swedish investment company. This purchase includes pivotal assets such as intellectual property and the production site located in Sundsvall. Conversely, its Kristinehamm plant was sold to Biosorbe last month. This move follows Renewcell’s bankruptcy, declared earlier in February at the Stockholm District Court, after unsuccessful attempts to secure necessary financing.
Under the new ownership of Altor, Renewcell has been rebranded as Circulose, reflecting the name of its principal product—a textile pulp innovatively created from discarded clothing and textile waste featuring natural fibres. Altor’s investment is anticipated to invigorate Circulose’s capabilities, facilitating its expansion on a global platform, though precise financial figures regarding the investment remain undisclosed.
Magnus Lundmark, CEO of Circulose, expressed optimism, highlighting the strategic partnership with Altor as a means to advance positive change within the textile industry. With Altor’s expertise, Circulose is poised to enhance its operational capabilities, securing a more stable future for itself and its industry peers. Lundmark’s sentiments echoed a confident outlook towards leveraging Altor’s resources effectively.
Clara Zverina, a principal at Altor, added depth to this sentiment, acknowledging the challenges faced with excitement over the unique patented technology Circulose possesses. Her emphasis on the critical imperative of scaling circular solutions underlined Altor’s resolve to collaborate with key industry stakeholders in revolutionising the textile and fashion sectors.
The acquisition has been enthusiastically received by significant players within the fashion industry. Mango and Zalando, both committed to sustainable practices, view Circulose’s continued operation as integral to their objective of incorporating circular design and materials into fashion. Mango aims to adapt all of its collections under these principles by 2030, while Zalando reinforces its dedication towards sustainable fashion production.
The acquisition by Altor signifies a pivotal chapter for Circulose, heralding innovations in sustainable textile recycling.
