Today, the news came that innovator Re:NewCell has been declared bankrupt by the Stockholm District Court. The Swedish textile company was unable to secure sufficient funding to survive long-term.
Only weeks ago, I discussed Re:NewCell for its amazing innovative product—circulose. To get this material, the company developed a patented process that recycles cellulosic textile waste, such as clothes made out of cotton.
Chairman of the Board of Directors, Micheal Berg, expressed his regret on the Re:NewCell website and stated, “This is a sad day for the environment, our employees, our shareholders, and our other stakeholders, and it is a testament to the lack of leadership and necessary pace of change in the fashion industry.”
A Shockwave Through the Industry
The news has shocked the fashion industry – and for a good reason.
Textile recycling remains a significant issue in the fashion industry, with only a ridiculously small percentage—a little over 1% —of textiles being recycled globally. Re:NewCell’s innovative process, therefore, was a glimmer of hope in the transition to a sustainable fashion industry.
On LinkedIn, Crispin Argento wrote, “Renewcell did not just file for bankruptcy—we ALL did.”
Re:NewCell’s bankruptcy reveals the challenges we face in transitioning to a sustainable fashion industry. It shows that without funding, there is only so much we can do.
To me, the answer is clear. Systemic change is required to create a sustainable fashion industry. We need collaborations, policies, and even laws to overcome the challenges.
Re:NewCell serves as a reminder that we are not there yet, and the fashion industry needs to keep investing in new sustainable innovations and promote environmental practices.
Sources
All pictures link to their source, and all credits go to the rightful owners.
You can find the header picture here.
Image Credit: Re:NewCell
