After a rough year, Circulose (formerly Renewcell) is shaking up its leadership and ushering in a new era. Former H&M Group CEO Helena Helmersson — who left the fast fashion giant in January — is joining as chairman, and McKinsey partner Jonatan Janmark as CEO. Both roles are effective from 1 December.
It’s an interesting move for Helmersson. H&M was one of the first brands to begin piloting Renewcell’s signature product Circulose, a material made from recycled cotton clothing that replaces the wood pulp traditionally used for man-made cellulosic fibres such as viscose. Between its launch in 2019 and early 2024, H&M Group invested $29 million in Renewcell to help get production of Circulose off the ground. However, in January 2024 — the same month Helmersson announced she was stepping down — H&M’s investments in Renewcell ceased.
It was not the only brand to step back, and Renewcell filed for bankruptcy a month later after failing to secure enough financing to keep going. The industry was quick to offer its thoughts on what went wrong, casting doubt over everything from its IPO strategy and the decision to build its factory in Sweden (far from brand supply chains) to the lack of brand and governmental support for next-gen materials.
“Renewcell required multiple brands and textile producers to make it work, and H&M made significant efforts to [help it] steer clear of bankruptcy,” says Helmersson. “H&M have given a lot of support to Renewcell over the years and wanted to see it succeed. We are all happy that [under] Circulose, it is getting a second chance.”
Renewcell’s post-bankruptcy future
The company is up for sale and hopes to keep going. The rest of the industry is watching and learning.
That second chance came from Stockholm-based investment firm Altor, which stepped in and acquired Renewcell’s remaining assets for an undisclosed sum, renaming it after its hero product, Circulose. Production ground to a complete halt in February, though Circulose said at the time of its bankruptcy that it had enough pulp and fibre in stock to fulfil brand orders for 18 to 24 months.
In a statement issued on Friday, Altor principal Clara Zverina said: “A challenger like Circulose, with the power to make the textile industry circular, will need experienced and world-class leaders to drive that change. We are taking action on that now, and we are immensely proud to attract Helena and Jonatan, a true dream team. Their experience and expertise are key for us to secure a stable and successful path for Circulose moving forward. They will be a great addition to Magnus, who has done an excellent job navigating Circulose through an intensive year as interim CEO and will continue to lead operations moving forward.” (Magnus Lundmark joined as COO in October 2023 and will now return to this role, having acted as interim CEO since June.)
