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Virginia Startup Circ Pioneers Circular Fashion With Breakthrough Recycling Technology

The Environmental Toll Of Fast Fashion

Fast fashion inflicts significant environmental damage, consuming vast amounts of water and generating high carbon emissions along with excessive pollution. The industry also contributes to a surge in microplastic contamination and textile waste, compelling brands and consumers alike to explore sustainable alternatives such as thrifting.

Innovative Technology Driving Textile Recycling

Despite fast fashion’s impact, less than 1% of clothing finds its way back into production, primarily because modern fabrics are complex blends that require complete fiber separation to be remade. Circ, a Virginia-based startup founded in 2011, is tackling this challenge head-on with its advanced hydrothermal technology. This process disassembles polycotton blends—accounting for 77% of the global textile market—by breaking them down into their original polyester and cotton components. As CEO Peter Majeranowski explains, “It’s a chemical process, very much like unbaking a cake, where we break down the polyester to its building blocks, separate it from the cotton, and put them back into the very beginning of the supply chain to be remade into new clothes.”

Strategic Partnerships And Industry Impact

Companies such as Allbirds, Zara, and H&M have already integrated Circ-recycled textiles into select product lines, despite a slight price premium. Esteemed brands known for their commitment to sustainability, including Patagonia—which is also an investor in Circ—recognize the importance of scaling innovative recycling processes to drive systemic change.

Scaling Sustainable Practices Globally

Matthew Dwyer, Vice President of Global Product Footprint at Patagonia, underscores that the higher cost of recycled materials is a necessary investment in breakthrough technology that can ultimately reduce environmental impact at scale. With $100 million raised from notable investors such as Patagonia, Temasek, Taranis, Marubeni, Inditex, and Breakthrough Energy Ventures, Circ is well-positioned to transform the textile recycling landscape. Headquartered in Danville, Virginia—once home to the largest textile mill in the U.S.—the company is expanding its reach with its first industrial-scale textile-to-textile recycling plant in France.

A New Era For Circular Fashion

Circ’s pioneering approach signals a significant step toward a circular economy in fashion, where sustainability, innovation, and profitability converge to reshape an industry in dire need of reform. As traditional recycling methods have fallen short, Circ’s model offers a promising pathway for transforming waste into a valuable resource, ensuring that the industry not only addresses its environmental footprint but also sets a precedent for future sustainability initiatives.

CySEC Enhances Market Integrity By Withdrawing Firms From Compensation Fund

Regulatory Action Strengthens Investor Protection

The Cyprus Securities and Exchange Commission (CySEC) has taken decisive steps to protect investors by removing two investment firms, VM Vita Markets Ltd and HTFX EU Ltd, from the Investors Compensation Fund (ICF). This move follows the earlier rescission of their Cyprus Investment Firm (CIF) authorizations.

Link Between Licensing And Compensation

The ICF serves as a safety mechanism, ensuring that clients receive due compensation if an authorized firm is unable to return funds or financial instruments. With the withdrawal of their operating licenses, these firms were rendered ineligible for the fund, highlighting the direct correlation between valid authorization and participation in investor protection schemes.

Preservation Of Client Rights

CySEC has been clear that the removal from the compensation scheme does not jeopardize the entitlements of affected clients. Investors who conducted eligible transactions before the revocation of membership retain the right to claim compensation, provided they meet the established conditions outlined in the directive. This precaution ensures that investors continue to receive remediatory support, even as the firms exit the regulated framework.

Maintaining Oversight In A Dynamic Market

This regulatory intervention reinforces CySEC’s commitment to market oversight and financial stability. By aligning firm licensing with participation in investor safeguard programs, the commission exemplifies robust supervisory practices that adapt to evolving market conditions. Such measures bolster investor confidence and set a standard for regulatory practices in similar financial markets worldwide.

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