Virginia Startup Circ Gains Momentum as Allbirds, H&M and Zara Adopt Its Recycled Textile Technology

The fashion industry generates up to 10 percent of global greenhouse gas emissions and produces massive amounts of textile waste, yet less than 1 percent of discarded clothing is ever recycled into new apparel. One major obstacle is polycotton fabric, now dominant in global clothing production but notoriously difficult to separate back into usable fibers.

Virginia-based Circ aims to change that. Founded in 2011, the company has developed a hydrothermal chemical process that “unbakes” polycotton garments, breaking polyester down into its base components and separating it from cotton without destroying either fiber. CEO Peter Majeranowski describes the method as reversing the manufacturing process to create virgin-quality materials that can reenter the clothing production cycle.

Circ works with textiles that can no longer be repaired, resold or thrifted and would typically end up in landfills or incinerators. The startup collects used clothing from various sources, recycles the fibers, and sells the regenerated materials to yarn spinners, dye houses and fabric producers.

Global brands including Allbirds, Zara and H&M are already using Circ-recycled fibers in select product lines. The company’s focus on high-value feedstocks like cotton-poly blends has attracted sustainability-driven partners — notably Patagonia, which is also an investor.

While Circ’s materials carry a small price premium, Patagonia’s product footprint leader Matthew Dwyer said this is expected for any early-stage innovation aiming for industrial scale. Patagonia and other investors are backing Circ to ensure the technology can expand to mass production rather than remain a niche solution.

To date, Circ has raised 100 million dollars from investors including Patagonia, Temasek, Marubeni, Inditex and Breakthrough Energy Ventures. The company is headquartered in Danville, Virginia, once home to the nation’s largest textile mill. As Circ looks toward global expansion, it is preparing to open its first industrial-scale textile recycling facility in France, marking a major step toward a more circular fashion economy.