Circulose — the Swedish recycler that rose from the ashes of Renewcell — says its efforts to shore up the recycled viscose supply chain are starting to show promise. It comes at a critical time for next-gen materials, in which investor confidence has been wavering after a series of collapses hit headlines.
On Tuesday, Circulose announced multi-year partnerships with eight new brands, including Bestseller, John Lewis, C&A, Filippa K, Reformation, US clothing brand Faherty, childrenswear label Bobo Choses and German womenswear retailer Zero. Circulose says these deals bring it significantly closer to reopening its manufacturing facility, which has been sitting dormant for the past two years.
Renewcell announced its bankruptcy in February 2024, after it was unable to secure sufficient funding or brand buy-in to continue operating its commercial-scale factory, which opened in 2022. Early brand partnerships had stalled at the pilot stage, and the price premium proved too high to motivate the kind of widespread adoption needed to fill the facility (the company produces pulp for viscose using recycled textiles instead of conventional virgin wood pulp). Experts called it a wake-up call for an industry that often chases novel innovations, but doesn’t follow through with meaningful implementation. That’s why, when the company secured a new owner — and a new name — in June 2024, its focus shifted from pilots to industry-wide penetration.
In November 2024, Circulose drafted in a leadership team to steer its relaunch, helmed by former H&M Group CEO Helena Helmersson as chairperson and former McKinsey partner Jonatan Janmark as CEO. A handful of brand partnerships soon followed: by November 2025, the company had inked a multi-year deal with H&M, one of its original investors, as well as fast fashion giant Mango and high street retailer Marks & Spencer.
Janmark says the latest string of partnerships is an “important milestone in Circulose’s new chapter”. He adds: “After a year of resetting our strategy and intensely engaging with brands, this wave of commitments show our efforts are paying off.”
Still, the future remains uncertain. Sustainability has undergone a dramatic vibe shift this year, with Trump’s anti-ESG backlash in the US leading the way for watered-down regulations in the European Union. Meanwhile, brands are squeezing costs more than ever as supply chain volatility throws their profit margins into chaos. Next-gen material producers have been caught in the crossfires: in recent months, Mycoworks, Bolt Threads and Natural Fiber Welding have all wound down or shuttered their production of next-gen leather alternatives.
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