Former H&M CEO Helena Helmersson Joins Textile Recycling Firm Circulose as Chairman
In a significant move for the circular economy, textile recycling firm Circulose, formerly known as Renewcell, has appointed Helena Helmersson, the former CEO of H&M Group, as its new chairman. In addition to Helmersson's appointment, Circulose also announced the hiring of Jonatan Janmark, a partner at McKinsey & Company, as its new CEO. Both leaders will officially take on their roles on December 1, 2024, marking a new chapter for the firm, which is poised to make significant strides in the sustainable textile industry.
Helmersson's appointment follows a notable tenure at H&M Group, where she served as CEO from 2020 to January 2024. Having worked with H&M since 1997, Helmersson brings a wealth of experience in the fashion industry and a deep commitment to sustainability, making her an ideal leader for a company at the forefront of textile recycling and circular fashion. Her decision to join Circulose aligns with her long-standing dedication to environmental causes and her belief in the power of innovation to drive change in the fashion industry.
Jonatan Janmark’s appointment as CEO is equally significant. With over a decade of experience at McKinsey & Company, where he most recently served as a partner specializing in the consumer and textile industry, Janmark has a deep understanding of both business strategy and the textile sector. His expertise will be crucial in guiding Circulose through its next phase of growth, particularly as the company expands its reach on the global stage.
A New Beginning for Circulose
Circulose, which was rebranded from Renewcell following its acquisition by Swedish investment firm Altor in June 2024, has big ambitions for the future. The company specializes in textile recycling, with a particular focus on transforming end-of-life garments and textile waste into high-quality textile pulp. This innovative product, known as Circulose, is made from natural fibers and is key to the company’s mission to revolutionize the way textiles are recycled, contributing to a more sustainable and circular fashion industry.
The rebranding and leadership shake-up come after Renewcell, which had previously been recognized for its sustainability efforts—winning the prestigious Best Sustainable Textile Innovation award at the Drapers Sustainable Fashion Awards in 2023—filed for bankruptcy earlier this year. The company struggled to secure the necessary financing to continue operations, and its collapse was seen as a significant blow to the textile recycling sector. However, with the support of Altor, which acquired the company’s remaining assets, Circulose has a strong foundation for a fresh start.
Altor’s involvement is not limited to an ownership stake; the investment firm is committed to helping Circulose scale its operations on a global scale. This financial backing, combined with the leadership of Helmersson and Janmark, is expected to propel the company forward, enabling it to meet the growing demand for sustainable and recyclable textile solutions.
The Circular Economy: A Growing Trend in Fashion
The fashion industry is increasingly coming under pressure to adopt more sustainable practices, particularly as concerns about the environmental impact of textile waste continue to grow. Textiles, which take centuries to decompose in landfills, are a significant contributor to global pollution. According to the Ellen MacArthur Foundation, nearly 92 million tons of textile waste are generated annually, and only a small fraction of this waste is recycled.
The concept of a circular economy, which focuses on reusing and recycling materials to minimize waste and extend product life cycles, is gaining momentum in the fashion industry. Brands are exploring ways to close the loop on textile production, using materials that can be recycled into new garments, thereby reducing the need for virgin resources. Companies like Circulose are leading the charge in this transformation by creating high-quality recycled fibers from post-consumer textile waste, which can be used in the production of new clothing.
Helmersson’s appointment at Circulose is a strategic one, given her extensive experience in driving sustainability initiatives at H&M. During her tenure as CEO of H&M Group, Helmersson played a key role in the company’s sustainability efforts, including the launch of its garment recycling program and the goal of becoming climate positive by 2040. Her leadership was instrumental in shaping H&M’s commitment to circular fashion, which aligns perfectly with the mission of Circulose.
“I'm thrilled to be joining Circulose and supporting the company in my role as chair,” Helmersson said in a statement. “We have an ambitious agenda ahead of us, and a talented team ready to make it happen. I am glad to be working with Altor; our partnership will benefit from their industrial heritage and helping companies scale. Circulose feels very much like a natural fit for me and for the future, and I look forward to contributing with my many years of experience in the fashion industry.”
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Circulose's Vision: Revolutionizing Textile Recycling
Circulose’s mission goes beyond just recycling textile waste. The company aims to create a closed-loop system for textiles, where materials are constantly recycled and reused, reducing the need for new resources and minimizing waste. The company’s textile pulp, Circulose, is produced from cotton and other natural fibers found in old garments. This pulp can then be used to create new fabric, which can be made into clothing or other products. By transforming textile waste into high-quality raw materials, Circulose is offering a scalable solution to one of the fashion industry’s most pressing environmental challenges.
Janmark, as the new CEO, brings a fresh perspective on how to scale the company’s operations and expand its global reach. His experience in consulting for major brands in the consumer and textile industries will be invaluable as Circulose seeks to establish itself as a leader in textile recycling. With the backing of Altor and the expertise of Helmersson and Janmark, Circulose is well-positioned to drive innovation in the circular economy and redefine the future of fashion.
Circularity at the Forefront
As the fashion industry increasingly embraces sustainability, the demand for circular solutions like those offered by Circulose will continue to grow. The company’s work is part of a broader trend in which brands and consumers are prioritizing environmental impact, recognizing the need for more sustainable production processes and consumption patterns. The circular economy is no longer a fringe movement; it is becoming central to the future of fashion.
With Helmersson’s leadership and Janmark’s strategic vision, Circulose is poised to play a key role in this transformation. The company’s innovative recycling technology and commitment to sustainability will make it a key player in the global effort to reduce textile waste and create a more sustainable fashion ecosystem.
As the fashion industry continues to evolve, Circulose’s journey is one to watch. The company’s growth, powered by the leadership of industry veterans like Helmersson and Janmark, has the potential to revolutionize the way the world approaches textile recycling, making fashion more sustainable for future generations.
