Coloreel Group AB Files for Bankruptcy

Coloreel Group AB, the Swedish company known for its instant thread dyeing technology, announced it has filed for bankruptcy, citing an inability to develop its business volume quickly enough.

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Though the company reports having over 90 customers in over 20 countries, it does not have enough volume to overcome its financial hurdles. Discussions with financial investors and potential industrial partners to secure additional funding have been unsuccessful.

Underscoring the difficulty of scaling new technologies, Anders Persson, Coloreel Group AB’s Chairman of the Board, said the company attempted to pivot and adjust to the market’s climate.

“We have been working very hard to introduce new technology and new ways of working on the global textile market. Despite relentless efforts to grow the business, minimize operational costs, and secure additional funding, the challenges are too great,” he said.

The 2018 winner of the SKAPA prize, a Swedish innovation award, Coloreel’s goal has been to commercialize the art of embroidery.

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Described as a “complete thread-dyeing micro factory,” the company made the only printer for instant direct-to-embroidery thread dyeing. With Coloreel, brands can achieve unlimited color options for each embroidery, or produce multiple personalized designs without downtime or waste. Using a single needle and thread, the process expedites complicated designs with gradients and texturing. The company also offered 100 percent recycled embroidery thread.

Coloreel said it has over 120 granted patents across 45 markets to ensure “robust protection of the innovative technology.”

In 2022, H&M tapped Coloreel for an in-store pilot in Berlin that allowed consumers to customize their apparel purchases with embroidered designs. In 2021, the company raised $8.14 million to support market expansion and growth and to initiate expansion into new application areas such as sewing.

“The board and the management are incredibly proud of what our team has achieved, and we are grateful for the support we have received from our partners, customers, and investors,” Persson added.

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