Coloreel Group AB, the pioneering Swedish technology company known for its instant thread dyeing technology, has filed for bankruptcy.

The decision comes after the company’s inability to develop its business volume quickly enough in order to secure necessary financing.

Despite many in-depth discussions with financial investors and potential industrial partners, Coloreel has been unable to overcome its financial hurdles.

The company has aimed to transform the textile industry with unique colouring and design possibilities through a sustainable and efficient thread dyeing process.

Coloreel technology makes possible the instant colouration of embroidery threads during actual production and its advantages are immediately apparent. In conventional embroidery a large number of threads are required that need to be dyed, colour matched transported and stored. Coloreel works from just a single thread and using CMYK technology can instantly print over 12 million colours –  roughly 80% of the Pantone palette.

Coloreel standalone units can be fitted above any single-head or multi-head industrial embroidery machine and just have to be connected to existing factory automation, using open interfaces and free file formats.

A comparison between Coloreel direct dyeing and one of the world’s leading thread manufacturers shows that traditional thread dyeing produces 50 times more wastewater and consumes 97% more water than Coloreel’s direct dyeing does.

There are currently an estimated eight million embroidery heads installed globally so Coloreel had a big enough market to go at, and its ambitions haven’t stopped there.

In May this year the company announced a partnership with Juki America that will extend Coloreel’s thread dyeing technology to the sewing industry. With Coloreel, Juki sewing machines can now access millions of precise colours in real time.

Coloreel already has over 90 customers in the global market, many of them well-known brands. Over 120 granted patents across 45 markets ensure protect the technology.

“It is with a heavy heart that we announce the filing for bankruptcy today,” said Anders Persson, chairman of the board, Coloreel Group AB. “We have been working very hard to introduce a new technology and new ways of working on the global textile market. Despite relentless efforts to grow the business, minimise operational costs and secure additional funding, the challenges are too great. 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.”

The filing also applies to daughter company Coloreel AB.

www.coloreel.com