It is truly tragic that this business model appears to be unsustainable, leading the company into insolvency. What could have been the cause—issues in the supply chain, a disconnect with the customer, or a lack of understanding of value creation? It will be very interesting to see how the upcoming regulations concerning circularity, value stream management, sustainable design, and the implementation of CO2 tracking schemes can be effectively applied if they are not commercially viable within the business structure. We still don't know whether this challenge stems from market conditions, the value proposition, the unique selling point, or pricing strategies. However, the fact remains that if such business models are not commercially feasible, it will be extremely challenging for the textile industry to implement bonus schemes and adopt circular supply chains and recycling methodologies. How can value stream management in the circular textile industry be achieved while maintaining a positive cash flow and a sustainable business model?
TEXTILE RECYCLER WHICH RUNS 'TAKE-BACK' SCHEMES FOR MAJOR FASHION BRANDS GOES INTO ADMINISTRATION: Soex Group, a leader in the recycling of old clothes and shoes, has filed for administration. This is hugely significant for the global fashion industry as German-based Soex owns I:Collect, a major facilitator of clothing take-back schemes for many of the world's leading fashion brands. I:Collect has partnered with brands such as H&M , Levi Strauss & Co. ,Columbia Sportswear Company and DECATHLON FRANCE over the years along with many others. Soex's restructuring, driven by market shifts and competitive pressure from Asia, affects 460 employees in Germany. On a personal note, I visited the huge, sprawling recycling facility of Soex around a decade ago. At that time new methods of recycling were being trialled at the plant and there was talk that take-back schemes run by brands could form the bedrock of a new circular economy for fashion. However, concern was also expressed about the increasingly poor quality of clothing entering second hand markets. With margins for second hand clothing being steadily eroded, will more and more recycling shift to Asia and the Middle East? OUR STORY: https://lnkd.in/eJb2ipgg #Sustainability #FashionIndustry #CircularEconomy #TextileRecycling #Soex #ICollect #Insolvency #GreenFashion #TextileWaste