Bankruptcy reboot: Altor-backed Circulose lands new deals with fashion brands – ‘Our efforts are yielding results’

Renewcell filed for bankruptcy in 2024 after failing to secure fresh capital. The Swedish company, which converts textile waste into new materials, had struggled to scale its business.

The assets were later acquired by Altor Equity Partners, the investment firm founded by prolific climate tech investor Harald Mix (of Northvolt and Stegra fame). After the buyout, which was led by the firm's principal Clara Zverina, Altor relaunched the company under a new name: Circulose.

Circulose takes discarded cotton-rich textiles and production waste, strips out buttons, dyes and synthetic fibres, and breaks the material down into pure cellulose.That cellulose is turned into sheets and sold to fibre producers, who make new, virgin-quality textile fibres that brands use to produce new clothes.

As part of the reboot, Altor also brought in former H&M CEO Helena Helmersson as chair. Ex-McKinsey partner Jonatan Janmark was hired as CEO.

“We have changed our entire go-to-market strategy based on the lessons learned from Renewcell,” Janmark told Vogue Business at the time. “Now we are focusing on building deeper partnerships with brands that can drive greater volume.”

That strategy now appears to be gaining traction.

Following earlier agreements with H&M, Mango, and Marks & Spencer, a fresh wave of fashion brands has signed on. New partners include Bestseller, John Lewis, C&A, Filippa K, Reformation, Faherty, Bobo Choses, and Zero.

The deals mark an important milestone in Circulose’s next chapter, Janmark said.

“After a year of adjusting our strategy and working closely with brands, this wave of commitments shows that our efforts are paying off,” he said in a statement. “Their support helps us take the next step in our production journey. We want to enable brands that are serious about changing the textile industry.”