Coloreel Group, the company pioneering instant thread-dyeing technology, has today announced that it has filed for bankruptcy.

The Swedish company blamed the move on its “inability to develop its business volume quickly enough and, related to this, secure the necessary financing”.

Despite many in-depth discussions with financial investors and potential industrial partners to secure additional funding, Coloreel reported today that it was unable to overcome its financial hurdles.

Coloreel Group AB chairman Anders Persson said: “It is with a heavy heart that we announce the filing for bankruptcy today. 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 bankruptcy filing also applies for the daughter company Coloreel AB.

Launched in 2018, Coloreel technology integrates with embroidery machines to provide high-quality dyeing of thread on demand. It now has over 90 customers internationally, including Snuggle in Peterborough.

The technology is distributed in the UK through AJS, Amaya Sales UK and Stocks. Coloreel has not yet confirmed how the bankruptcy will affect customers and partners.