News Summary

Montreal-based startup SRTX, known for its durable Sheertex tights, is facing insolvency and has struck a deal to sell some of its assets to AYK International, a Québec textile manufacturing firm. Court filings reveal that SRTX has struggled with high production costs and scalability issues despite its innovative technology. Founded in 2017, SRTX was once valued at $350 million USD and raised approximately $255 million USD in funding. However, the company recorded a net loss of $30.1 million USD from January to October 2025, with total losses exceeding $128 million USD since 2023. SRTX’s founder, Katherine Homuth, has acknowledged these financial challenges, citing the cyclical nature of the hosiery sector and shifting trade policies as contributing factors. The strategic review led by PwC attracted four offers, with AYK International selected to continue the Sheertex brand. As part of the transaction, SRTX filed a Notice of Intention under the Bankruptcy and Insolvency Act and is seeking court approval to cleanse the business of unwanted assets and debts.