Renewcell was founded in 2012 and at most had a valuation of several billion and is owned, among other things, by the clothing company H&M.
Got an environmental award last year
The company had a strong stock a few years ago and won as recently as fevery year the Nordic Council’s environmental awardwith the justification: “For the company’s pioneering solution to recycle and recreate textile waste into new clothes and new products”.
But recently the setbacks have also been a fact. The share price has plummeted and at the end of last year the then CEO was fired.
In January 2024, the company announced that it had to notify 30 people – and now comes the news that the company is filing for bankruptcy.
Failing to secure the finances
The reason is, according to a press release, that Renewcell, together with its owners and other major lenders such as Nordea and the European Investment Bank, have not succeeded in reaching an agreement that would secure the financial situation for the company.
“This is a sad day for the environment, our employees, our shareholders and our other stakeholders, and it is proof of the lack of leadership and the necessary pace of change in the fashion industry,” writes the company’s chairman Michael Berg in the press release.