The system and the math rule.
Just three years ago, Renewcell ’s maket cap topped $1b on Nasdaq. That same year, it was named as one of Fast Company’s Most Innovative Companies in the world. The company raised equity fo finance a full sale #recycling plant in Sundsvall Sweden that ran on 100% renewable energy and was awarded RCS 100 certification.
The company sold its Circulose fiber to Levi Strauss & Co.’s, Calvin Klein, ZARA SA, Tommy Hilfiger and Ganni A/S among others. H&M was also a customer, provideed Renewcell with a five year offtake agreement and invested equity in the company. The company’s ambition was to recycle more than 1.4 billion t shirts every year by 2030.
Renewcell’s endline is “we make fashion #circular”….and they appeared well on their way.
And yet, over the weekend, sadly, the courageous compay declared bankruptcy.
⭕️This announcement reinforces the reality that fashion circularity remains conceptually persuasive and practically no where.
🧮 Notwithstanding fantastical goals (e.g. H&M has committed to a fully circular model by 2030, adidas, Nike, Gucci, Crocs and many other #fashion brands tout their circular commitment and models, as well)…the technology, regulations, infrastructure and math don’t work. As long as virgin fibers are cheaper than upcylced fibers, innovative technology companies wil struggle.
According to Paul Dillinger, Levi’s Head of Global Product Innovation, “Somehow, the civic engagement and collective understanding that it’s not just doable, but necessary, hasn’t permeated our collective social behavior.”
Absent such a shift in zietgeist, different rule and incentives need to be enacted if fashion is to get beyond its current level of < 1% fully circular systems. (see: SSIR: "A Circle that Isn't Easily Squared" for more).
Maxine Bédat Evan Wiener Randi Marshall Leslie Johnston Katrin Ley Livia Giuggioli Firth Rachel Arthur Matt Powell Sucharita Kodali Sarah Kent Alden Wicker Alissa Baier-Lentz Michael Beutler Eric Liedtke Bronwen Foster-Butler Kim van der Weerd
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