Riachuelo's owner launches the Guara Circular project to process industrial textile waste into new apparel.
Guararapes Confecções S.A., the parent company of Brazilian fashion retailer Riachuelo, announced on 10 September 2026 the rollout of its Guara Circular project. The initiative transforms industrial fabric scraps into recycled cotton yarn. The company projects an annual production capacity of 4 million garments made with recycled fiber.
According to Taciana Abreu, sustainability director at Riachuelo, this target represents approximately 10% of the volume currently manufactured at the company's factory in Natal. The circular supply chain connects the Natal complex with spinning facilities in João Pessoa via a 3-hour logistics route.
The project debuted commercially through the Pool Loop denim line, which launched an initial batch of 41,000 garments. The fabric used in the collection blends 25% recycled fiber with 75% virgin fiber.
The company's industrial complex in Natal covers 200,000 m² and cuts an average of 155,000 garments daily. During 2025, the cutting division processed 9,600 tonnes of fabric, of which 47% was 100% cotton. Industrial cutting operations generate an average of 14.4% fabric waste, while in-house manufacturing accounts for 40% of the apparel assortment sold across Riachuelo stores.
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