GHERZI GERMANY ’s Post

Thanks Brett Mathews for this. I had a conversation with Marco de Gier MD SOEX TEXTIL VERMARKTUNGSGESELLSCHAFT last week when I found about this and he was very optimistic that they would find a solution to this and he hopes that they can continue trading. This highlights the incredible and increasing pressure the used textile industry is in and why any EU, UK and USA policies on the export of this much needed commodity needs to be thought through carefully. A knee jerk reaction to erroneous reports by NGO’s who may not have the best interest of the community’s that they claim to represent at heart. Reuse is still the best method for achieving our objectives and the industry that I and many like me represent have been shouting about this exact scenario for more than a decade now needs urgent action. We don’t need more promises and hope for the future. We need urgent and immediate cash injection now to save this vital infrastructure here in the UK and also globally. Urgent action is needed to kerb the flow of ultra fast fashion and brands like SHEIN Temu H&M Zara New Look et al need to be held accountable for the sheer volume of material that they are placing on the market and claiming to meet consumer demand. #reuse #circularity #textilerecyling

Collection and export is not recycling, merely problem shifting. If we enjoy the consumption onshore, we process and recycle onshore. Whilst sad for all affected employees, the model has to change. BlockTexx #onshorerecycling #textilerecycling #bantextileexports

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

Another set-back for sustainable fashion. I:Collect, one of the largest textile recyclers in Europe, collecting textile waste via take-back schemes for brands such as H&M, Levi’s, Columbia has gone into administration. This raises important questions about the future of textile recycling in fashion. 

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 and adopt circular supply chains and recycling methodologies. Question to all: How can value stream management in the circular textile industry be achieved while maintaining a positive cash flow and a sustainable business model?

Important Industry Update: Soex Group Files for Administration It is with a sense of reflection that I share the news that Soex Group has officially filed for administration. Known for their significant role in the textile recycling industry, Soex Group has made substantial contributions to sustainability and circular economy efforts over the years. While this marks a pivotal moment for the company and its employees, it also highlights the ever-evolving challenges faced by businesses in our rapidly changing world. This news serves as a reminder of the importance of innovation, adaptability, and resilience in today’s market. Wishing all those affected strength as they navigate this difficult time.

What?! 🤷♀️ The recent news of Soex Group, a stalwart in textile recycling, filing for administration underscores a critical, often overlooked issue in our fashion industry: the efficacy and authenticity of recycling initiatives. While Soex has been pivotal in facilitating take-back schemes for renowned brands like H&M, Levi Strauss, Columbia Sportswear, and Decathlon, the broader implications of these programs on sustainability deserve scrutiny. The primary challenge lies not in the intention behind these recycling schemes but in their EXECUTION and IMPACT. 👗 Germany, despite its advanced recycling technologies, recycles a mere 1% of old clothes, with the majority being exported to other countries. This stark statistic reveals a troubling disconnect between the perceived benefits of recycling programs and their actual effectiveness. Moreover, these initiatives are often championed by fast fashion brands, whose business models are inherently predicated on rapid consumption and disposability of clothing. By promoting recycling as a solution, there is a risk that these brands are merely providing a veneer of sustainability—a "greenwashing" tactic that distracts from the real issue: the overwhelming volume of apparel produced and discarded each year. The reality is that take-back schemes, while beneficial in theory, do not address the core problem of overproduction in the fashion industry. Instead of forming the foundation of a new circular economy, these programs often result in shifting the burden of waste to other regions, where environmental regulations may be less stringent. It is crucial to pivot our focus from symptomatic treatments to systemic changes. This includes re-evaluating our consumption patterns, enforcing stricter regulations on production practices, and holding brands accountable. The path towards genuine sustainability in fashion is complex and requires more than just recycling—it demands a radical transformation of current practices, aiming for a true transformation. Could it be that our challenges in achieving true sustainability stem from not fully addressing the underlying systems of production and consumption? As we reflect on the efforts to recycle and reduce waste, it’s worth considering whether our current economic models sufficiently support these goals. Perhaps it’s time to explore how capitalist societies can evolve to not only manage waste but fundamentally reduce the environmental impact of our consumption habits. How might we reimagine our economic practices to genuinely embrace environmental responsibility? #fashionrevolution #2ndish #thecircularityclub #sustainablelifestyle #degrowth

Such sad news (and perhaps not shocking, as fashion recycling system is kind of broken). What did we learn from this? What is the future of textile recycling? Or the fashion industry as a whole. What next? In the meanwhile, what about we all just slow down our consumption until we figure something out? It is not a perfect solution, but at least we are doing something. What do you think? What action can we take as individuals to make a positive difference? Or perhaps you think it is not our responsibility as consumers to take positive action? Or maybe you even think it is “point-less to try? Please share your thoughts.

🛍️ The textile recycling ♻️industry, while initially promising, has proven to be economically unsustainable& environmentally taxing. ❗️ Textile recycling industry, exemplified by Soex Group’s recent challenges, illustrates ; 🔻significant economic inefficiencies& environmental costs. 🔻With 📉low profit margins, 📈high energy consumption,& market that increasingly favors new production, it becomes evident that textile recycling is not practical ,struggling to establish itself as sustainable solution. 🎊Fashion industry must pivot towards reducing consumption, improving quality& lifespan of products rather than relying on recycling alone, which has shown itself to be a limited solution.❗️ 📊 Economic Data& Statistics 🏪Market Size: ➡️global fashion industry is projected to reach $3 trillion by 2030. ➡️textile recycling market is projected to reach only $8 billion by 2027, reflecting a mere 0.27% of overall fashion market. ⚡ Energy Consumption: 🍀Cotton Recycling: Recycling one kilogram of cotton can consume 20,000 liters of water and release 1.2 kg of CO2 emissions. ⚡️Energy Costs: avg energy consumption for recycling textiles estimated to be 3.5 MJ/kg (megajoules / kilogram). This figure 📉significantly impacts the cost-effectiveness of recycling operations. 📉 Profit Margins: ➡️ profit margins for second-hand clothing have dropped from 40% to around 15% in recent years due to the influx of low-quality garments. ➡️ cost of recycling textiles is estimated to be $0.10 to $0.20 per pound versus a sale price of $0.50 to $1.50 per pound for recycled products, leading to net loss. ♻️Textile recycling is failing, we can model the economic implications of recycling versus production of new textiles.❗️❗️❗️ Cost Analysis: Let: Cr= Cost of recycling 1 kg of textile Pr= Profit from selling recycled textiles Cn= Cost of producing 1 kg of new textiles Pn= Profit from selling new textiles Given: Cr➡️average energy cost of $0.10/kWh. ➡️Recycling incurs energy costs of Total energy cost for recycling: Now, if (cost of producing new textiles) is significantly lower, say $0.50/kg, & 📊 Net Profit Analysis: Through Evonomic 🤑 analysis Comparing profits shows that profit from producing new textiles 📈is $1.50/kg while profit from 📉recycled textiles is only $0.803/kg. This disparity indicates that recycling is less financially viable compared to traditional manufacturing. Factor Recycling New Production is bound to be a Failure 🔜 Because⏬⏬⏬ ✅Market Size-$8 billion by 2027$3 trillion by 2030. 🔻Recycling constitutes only 0.27% 🔻Energy Consumption 3.5 MJ/kg.2 MJ/kg Higher energy costs make recycling less viable. 🔻Profit Margins 15%-40% Declining margins for second-hand markets. 🔻Cost of Recycling $0.10 to $0.20/lb $0.50/lb Higher costs hinder profit generation. 🔻Environmental Impact High emissions (1.2 kg CO2/kg cotton) Lower emissions Recycling’s carbon footprint can negate benefits

It is truly concerning what has happened. In a market increasingly focused on reuse and recycling, where reverse logistics operators (collectors, sorters), as well as repairers, and companies involved in reuse and recycling are becoming ever more important and necessary to create circularity, we are fighitng with the transition period from a linear to a circular economy. During this time, the most challenging for industry operators, all those products not designed with an eco-design approach but rather with a fast-fashion mentality, where sustainability, reuse, durability, reparability, and recyclability are not considered (or even intentionally avoided), must be managed. Our circularity operators will therefore be required to operate in the "#CURVINGtheECONOMY " phase (from linear to circular). A phase where the products to be processed will be the most difficult, the least recyclable, the least durable, putting all the operators to the hardest test. Until the time comes to recycle products that will have been "born circular", ecodesigned, designed to have endless lives, we will have the curving period of the linear economy. This is what Aquafil Group, with its ECONYL®Brand product, has been working towards for years. #beginningwiththeendinmind, #givingcircularity to a product during its design phase. So in order that this transition period (#curvingtheeconomy phase) will be not too long, let's all push to make sure that “the products we use and buy are the result of an ecodesign and have not one life, but infinite lives.” And remember, #recycleddoesnotmeanrecyclable. If you want to promote #circularity, #focusonrecyclability.