SRTX founder Katherine Homuth says she has submitted a bid to rejoin the company she departed in March as it undertakes a strategic review process that could result in a sale.
The Sheertex tights maker said in a release today that it’s exploring a “range of options” for its future, including a sale, recapitalization, or reorganization. The company said its new CEO, Sophie Boulanger, who joined in September, is also stepping down. Boulanger’s departure was a “personal decision,” according to SRTX spokesperson Eva Hartling, after guiding the company through “transition and operational evolution.”
Katherine Homuth
“Ultimately, my goal hasn’t changed since the day I started.”
As part of the review, Hartling told BetaKit that close to 100 employees have been temporarily laid off “to align with current operational needs.” SRTX employed close to 200 people before the temporary reduction. The company had roughly 350 staff in February prior to temporary layoffs that led to the permanent departure of 92 employees. Hartling added that SRTX expects the strategic review to take two to three months.
In a LinkedIn post captioned “Diary Day 1: Return to Sheertex,” Homuth said she has submitted a proposal to SRTX that could hopefully “provide a path to some amount of recovery for the operations, the sales, the brand.” Homuth confirmed to BetaKit that she intends to return as CEO if the proposal is accepted. SRTX declined to comment on Homuth’s proposal.
“Ultimately, my goal hasn’t changed since the day I started,” Homuth told BetaKit. “I hope Sheertex can find a path forward; operating profitably as an example of advanced manufacturing in Canada, and continuing to bring customers extraordinary products.”
Founded in 2017, SRTX makes Sheertex rip-resistant tights, which consist of a uniquely durable polymer several times stronger than steel wire. Over the past year, the company has contended with a cash crunch, the impacts of tariffs and cross-border duty changes, and the departure of its CEO and founder. Homuth stepped down in March as part of a $40-million USD fundraising deal from the company’s existing investors, which include the BDC Capital, Investissement Québec, Export Development Canada, and H&M Group.
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The $40-million deal was meant to sustain operations as SRTX dealt with additional duties from United States trade policy, including the abolition of the de minimis exemption on low-value goods. The company temporarily laid off roughly 40 percent of its staff at the time.
“I was hopeful that the company would be able to figure it out,” Homuth said in the video. “But I think the announcement that went live today makes it pretty clear that that has not transpired.”
Homuth added that she intends to document the process of her possible return through a daily video diary. Since leaving SRTX, Homuth has been vocal about building her new software venture, Oomira, and developing a set of standards to help founders negotiate their working conditions. Before her departure, Homuth had been candid on social media about SRTX’s fundraising needs. As part of the fundraising deal, Homuth and her replacement had to adhere to a new social media and communications policy.
Feature image courtesy The BetaKit Podcast.