Renewcell gets new owner as Altor acquires assets

The news of Renewcell's bankruptcy earlier this year surprised many who saw it as a standard-bearer for the circularity revolution. But the operation, now renamed Circulose for its key product, lives on after the remaining assets are acquired.

The assets of the leading cotton textile recycling company have been acquired by Altor, a Sweden-based investment firm.

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

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

And Altor should “provide the resources and network necessary to expand the impact and reach of Circulose.”

The company also said that “the current inventory of Circulose pulp and fiber 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 move forward with confidence and with the guarantee of an uninterrupted supply chain.”

Clara Zverina, director of Altor, added: “We do not shy away from the challenge and it is worth accepting, both because of the uniqueness of the patented technology and the urgency of scaling up 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 unlock the potential of Circulose together.”

And the brand's reaction? “Mango aims to incorporate circular design in all our collections by 2030,” said Andrés Fernández, Director of Sustainability and Sourcing at Mango. “We are very excited that [this] Low-carbon circular product remains online. We look forward to continuing our collaboration with the new team, Canopy, and our peers in the industry to bring quality, next-generation fashion to the market.”

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