Renewcell, a Swedish startup that recycles textile waste, has announced plans to file for bankruptcy following an inability to secure adequate financing to complete its strategic review, which began in November 2023.

The company succeeded in raising USD 10 million in short-term funding from investors and lenders in December 2023 but failed to generate additional financing beyond this.

Analyst QuickTake: The news follows a period of turbulence at the company, resulting in a 25% workforce reduction in January 2024 and concluding that it would need to restructure to address its financial concerns. This was preceded by several months of lower-than-expected sales and deliveries to customers, coming to a standstill in November 2023.