Renewcell gets a new owner while Altor acquires assets

News of Renewcell’s bankruptcy earlier this year came as a shock to many who saw it as a standard-bearer for the circularity revolution. But the operation – now renamed Circulose after its flagship product – lives on and the remaining assets have been acquired.

The assets of the cotton textile recycling leader have been acquired by Altor, an investment company based in Sweden.

The company said the acquisition “marks a new chapter” and with Altor ownership we are told there is “secure financing for the future of Circulose, which will ensure the company’s pioneering cotton recycling technology continues to thrive on a global scale”.

The technology of recycling cotton to create a dissolving pulp for MMCF producers, such as viscose, is a cornerstone of the company’s business. Circulose pulp, the solution to textile-to-textile circularity, “will continue to lead the way in creating a sustainable future for the fashion and textile industry”.

And Altor must “provide the resources and network necessary to increase Circulose’s impact and reach.”

The company also said that the “current inventory of Circulose pulp and fibers is ready to meet market demand, supported by our dedicated Circulose Supplier Network (CSN) partners who continue to supply high-quality materials. This ensures that the market can move forward with confidence with the assurance of an uninterrupted supply chain.”

Clara Zverina, director at Altor, added: “We do not shy away from a challenge and this one is worth taking on, both because of the uniqueness of the patented technology and the urgency of scaling up circular solutions for the entire textile and fashion industry, especially replacing virgin cotton and MMCF. We are committed to working with key stakeholders across the value chain to jointly unlock Circulose’s potential.”

And the brand response? “Mango aims to incorporate circular design into all our collections by 2030,” says Andres Fernandez, Head of Sustainability and Purchasing at Mango. “We are so excited that (this) low-carbon, circular product remains online. We look forward to continuing our partnership with the new team, Canopy, and our industry colleagues to bring quality, Next Gen fashion to the market.”

Pascal Brun, Vice President of Sustainability and Diversity & Inclusion from Zalando, added: “Congratulations to the new owners of Circulose. At Zalando we are committed to producing fashion in a sustainable way, and we are proud to be part of the collective effort to bring circular materials to the fashion market.”