After over a year of uncertainty, Montreal-based SRTX has been sold.
SRTX has been a fast-growing startup/disruptor in the textile space. Between 2019 and 2025, SRTX raised roughly $255 million USD in equity and debt to fund expansion and manufacturing integration. A $37.5M equity recapitalization in March 2025 proved insufficient, and continued operational challenges led to a formal strategic review launched in October 2025. In addition to ongoing challenges, the firm was unable to manage tariff changes instituted by the US administration.
PwC ran a two-phase sale and investor solicitation process. Eight parties submitted non-binding LOIs, and seven advanced to binding offers — with A.Y.K. selected as the successful bidder on January 29, 2026.
The sale faced opposition from at least one shareholder who expressed "profound surprise" at the insolvency filing but the sale received court approval.
Certain assets, including the Pointe-Claire lease and specific machinery and equipment, are not part of the deal. According to court filings 7 of the remaining 30 employees will be retained. At their peak, SRTX employed approximately 350 people. A very disappointing end to a once-promising firm.
Photo: Then PM Justin Trudeau visiting the SRTX facility in 2024.
More: SRTX Group seeks reverse vesting transaction following NOI filing