Circulose: Revitalizing the Recycled Viscose Supply Chain

Circulose, the Swedish recycler that emerged from the ashes of Renewcell, is making strides in shoring up the recycled viscose supply chain. This progress comes at a crucial time for next-gen materials, as investor confidence has been wavering following a series of high-profile collapses in the industry.

Recently, Circulose announced multi-year partnerships with eight new brands, including Bestseller, John Lewis, C&A, Filippa K, Reformation, Faherty, Bobo Choses, and Zero. These partnerships bring the company closer to reopening its manufacturing facility, which has been inactive for the past two years.

Renewcell faced bankruptcy in February 2024, unable to secure adequate funding or brand support to sustain its commercial-scale factory. Initial brand partnerships stalled at the pilot stage, and the price premium of its recycled viscose proved prohibitive for widespread adoption. The industry took note of Renewcell’s downfall, highlighting the importance of moving beyond innovation to meaningful implementation.

With new ownership and a new name, Circulose shifted its focus from pilots to industry-wide adoption. In November 2024, a new leadership team led by former H&M Group CEO Helena Helmersson and former McKinsey partner Jonatan Janmark was brought in to steer the company’s relaunch. Subsequent partnerships with H&M, Mango, and Marks & Spencer followed, signaling a new chapter for Circulose.

Jonatan Janmark, CEO of Circulose, views the latest partnerships as a significant milestone in the company’s journey. He emphasizes the importance of engaging with brands and resetting strategies to achieve success in the sustainable fashion landscape.

Despite these positive developments, challenges remain on the horizon. The sustainability landscape has shifted dramatically, with regulatory changes in the US and EU impacting the industry. Brands are facing increased cost pressures amid supply chain disruptions, complicating their efforts to adopt next-gen materials. Recent closures of next-gen material producers like Mycoworks, Bolt Threads, and Natural Fiber Welding underscore the volatile nature of the industry.