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Renewcell files for bankruptcy in Stockholm District Court

Company News, News | March 1, 2024 | By:

Renewcell, a textile-to-textile recycling company based in Sweden, announced that the company is filing for bankruptcy because it was not able to secure sufficient financing to complete the strategic review, announced on Nov. 20, 2023, with satisfactory results. As part of the strategic review, Renewcell held negotiations with its two largest shareholders, H&M and Girindus, its existing lenders BNP Paribas, European Investment Bank, Finnvera (as partial guarantor), Nordea, AB Svensk Exportkredit and potential new investors as well as other stakeholders regarding long-term financing solutions. According to the company, these discussions did not result in a solution that would provide Renewcell with the necessary liquidity and capital to ensure its operations going forward.

“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” says Michael Berg, chairman of the company’s board of directors.

Renewcell was founded in 2012. Based in Sweden, the company developed a patented process that enables the recycling of cellulosic textile waste, such as worn-out cotton clothes and production scraps, transforming it into a new material called CIRCULOSE®. Fast Company named Renewcell one of the World’s Most Innovative Companies in 2021, as well as World Changing Idea in 2023. CIRCULOSE was also included on TIME Magazine’s list of the 100 Best Inventions in 2020.

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