STOCKHOLM – Renewcell is being obliged to file for bankruptcy in a major blow for the growing circular textiles and nonwovens industries.
The pioneering Swedish company (officially registered as Re:NewCell AB) started up the first 100% textile-to-textile recycling plant for the production of regenerated Circulose cellulose fibre in Kristinehamn, Sweden, in August 2022 but has been unable to secure sufficient financing to complete a satisfactory result from its strategic review, announced last November.
As part of the strategic review, Renewcell held advanced 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 in pursuit of long-term financing solutions.
It is now clear that these discussions have not resulted in a solution which would provide Renewcell with the necessary liquidity and capital to ensure its operations going forward.
“I regret to announce that we have been forced to take this decision to file for bankruptcy,” said the company’s chairman of the board of directors Michael Berg. “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.”
