Swedish private equity firm Altor Equity Partners has acquired the remaining assets of bankrupt textile-to-textile recycler Renewcell, the company said Tuesday.
The acquisition caps a months-long hunt for a buyer who would keep the recycling plant operating and satisfy creditors. The process has been closely watched by many in the industry, anxious to know the fate of a business that represented one of fashion’s most advanced prospects to turn old clothes into new textiles at scale.
Though Renewcell was a buzzy pioneer in the space, it declared bankruptcy in February after weaker-than-expected sales pushed it into a cash crunch.
Altor’s acquisition gives the firm a toehold in a space where it sees strong future demand. The recycler remains at the forefront of efforts to produce circular materials at scale, a shift many see as critical to meeting fashion’s sustainability goals.
”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,” Altor principal Clara Zverina said in a statement.
After the acquisition, Renewcell will operate as a new company under the name Circulose. The financial terms of the deal were not disclosed.
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Editor’s Note: This article was revised on June 4, 2024 to correct the timing of Renewcell’s bankruptcy announcement.