In an attempt to regain market share following a high-profile bankruptcy, textile-to-textile recycler Circulose has chosen McKinsey partner Jonatan Janmark as CEO and former H&M Group CEO Helena Helmersson as board chair.
With support from companies like H&M, the company—formerly known as Renewcell—was a pioneer in attempts to expand new textile recycling techniques. However, as market demand failed to keep up with growing manufacturing capacity, it encountered financial difficulties. In June, Altor Equity Partners, a private equity group, purchased it out of bankruptcy.
At the beginning of December, Janmark and Helmersson will join, tasked with starting over in a very difficult environment. The costs, reliability, and ease of use of well-established material supply networks have made it difficult for innovators to compete with the high-profile pledges made by major fashion firms to use more recycled textiles.
In a statement, Janmark stated, “We will now concentrate on bolstering Circulose to unlock the necessary shift from a linear to a circular textile industry. We are totally committed to seeing the shift through, even though it won’t happen overnight.”
