[ad_1]
Swedish textile recycler Renewcell announced the sudden departure of its CEO following a disappointing sales update last week, causing a sharp decline in its share price.
Renewcell, known for its chemical textile recycling facility and backed by H&M Group, had ambitious plans to achieve break-even on a cash flow basis by year-end. However, sluggish sales have made this goal unlikely, leading to a significant sell-off and an 80 per cent drop in its share price.
H&M expressed confidence in Renewcell’s potential to revolutionise the industry and has been actively selling clothing made from its recycled material. Despite these efforts, Renewcell’s challenges highlight the difficulties faced by material innovators in navigating fashion’s intricate, opaque, and price-oriented supply chains. While new technologies struggle to transition from pilot phases to commercial scale, a new obstacle has emerged: low demand from manufacturers.
Although Renewcell still sees interest from brands, the adoption of its recycled cellulose pulp by fibre manufacturers has been slow. To address this issue, the company has decided to bring in new leadership. Patrik Lundström, the CEO since 2019, will be temporarily replaced by former MediaMarkt Sweden CEO Magnus Håkansson.
Renewcell has initiated the search for a permanent replacement to steer the company through these challenges.
[ad_2]
Source link