Reorganization process at Texaid: used textile market in crisis!

Reorganization process at Texaid: used textile market in crisis!

Texaid Beteiligungsverwaltung Deutschland has initiated restructuring proceedings for its subsidiaries Resales Textilhandels- und -recycling GmbH and Texaid Collection GmbH. These were announced today. The background to this decision is the tense economic situation and the challenges in the popular used textile market. The company is based in Apolda, where Resales operates the largest sorting operation for used textiles in Germany, sorting an impressive 16,600 tons in 2022. The turnover of 50.8 million euros this year also shows that there is a lot of potential here. But the difficulties in the industry could not be overlooked, which explains the need for restructuring. According to euwid-recycling.de, the business operations of the affected companies will initially continue without restrictions.

The situation is particularly explosive in the used textile market, which according to umweltwirtschaft.com is in a deep crisis. Industry representatives warn that the current situation is more serious than during the COVID-19 pandemic. The used textile recycling sector is experiencing a dramatic decline; Since spring, the prices for original collectibles no longer cover the costs of collection and storage. Stefan Voigt, chairman of the textile recycling trade association, describes the situation as threatening the existence of many companies in the industry.

The crisis is hitting recycling companies hard

In 2022, an average of 680 employees were employed at Texaid Germany. But the uncertainties are making life difficult for many companies. Inventories are growing immeasurably and sales opportunities have almost collapsed. Market participants from home and abroad complain that supply chains are broken, which is putting additional strain on business. The situation is described as a free fall and many old textile recyclers have reached the end of their economic possibilities, as bvse.de reports.

A decisive factor in this disaster is the population's changing consumer behavior. The trend towards ultra fast fashion and the associated poorer quality of textiles have destabilized the market. Products that previously offered a good basis for recycling now often end up in the waste stream without their recycling remaining economically viable. Many companies have considered solutions such as bartering to ensure survival while others reduce capacity.

Prospects and solutions

The industry is desperately looking for ways to overcome the crisis. There are calls for the introduction of a national EPR system for textiles, which could stabilize costs. The EU Commission is also planning to introduce a system of extended producer responsibility for textiles, which could be crucial for the future. The collection and recycling structures in Germany in particular should play a central role here. Unfortunately, international markets such as the Netherlands and Eastern Europe are also increasingly affected, which illustrates the global dimension of the crisis situation.

Whether the restructuring of Texaid Germany is the key to leaving the shadows of the past behind is anyone's guess. Many companies will be wondering how much longer they can hold on as uncertainty continues about the future of the used textile recycling industry. Developments will continue to need to be monitored closely.