Hannah Ernst

On February 25, 2024, the Swedish fiber-to-fiber recycler Renewcell filed for bankruptcy. The textile recycling company backed by some of fashion’s biggest corporations such as H&M, Levi’s, Inditex, and Ganni was an early adopter that turned cotton textiles into a feedstock for other yarns like viscose or lyocell and was viewed by some as a guinea pig for the industry. “This is a sad day for the environment, […] and it is a testament to the lack of leadership and necessary pace of change in the fashion industry,” said Chairman of the Board of Directors, Michael Berg back in February. After almost four months of uncertainty around the start-up’s future, Renewcell was now bought by Sweden-based investment firm Altor.

While it is a welcome surprise that Renewcell found a new buyer after its initial filing for bankruptcy, it still seems difficult to comprehend how its major high-profile shareholders and lenders could not see a future for textile recycling. As such, the bankruptcy statement sent waves of uncertainty through the industry and ignited a sorely needed conversation that remains relevant today: Is fiber-to-fiber recycling simply not ready for scale yet?