Renewcell gets new owner as 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 key product — lives on with its remaining assets having been acquired.

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

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

The technology of recycling cotton to make a dissolving pulp for MMCF producers, such as viscose, has been a cornerstone of the company’s operations. Circulose pulp, its solution for textile-to-textile circularity, “will remain at the forefront to create a sustainable future for the fashion and textile industry”.

And Altor should “provide the resources and network needed to scale Circulose’s impact and reach”.

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

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.” 

And the brand reaction? “Mango has a goal to incorporate circular design into all of our collections by 2030,” said Andres Fernandez, Mango’s Head of Sustainability and Sourcing. ”We are so excited that [this] low-carbon circular product is staying online. We look forward to continuing our collaboration with the new team, Canopy, and our peers in the industry to bring quality, Next Gen fashion to the market.”

Pascal Brun, Vice-President of Sustainability and Diversity & Inclusion of 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 marketplace.”