Renewcell to file for bankruptcy
Producer of textile waste dissolving pulp Circulose, Renewcell, is to file for bankruptcy. It said it had not been able to secure sufficient financing to continue.
Renewcell launched a strategic review in November and said it had gone to an advanced stage in negotiations with its two largest shareholders, fashion group H&M and investment company Girindus, and with existing lenders BNP Paribas, the European Investment Bank, Finnvera, Nordea and AB Svensk Exportkredit.
It added that potential new investors and other stakeholders had also entered into discussion regarding long-term financing solutions.
“Unfortunately, it is now clear that these discussions have not resulted in a solution which would provide Renewcell with the necessary liquidity and capital to ensure its operations going forward,” it said.
Chairman, Michael Berg, said: “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.”
