News Summary

Katherine Homuth, the founder and CEO of Montréal-based textile manufacturing company SRTX, has reportedly stepped down from her role. The company, known for its Sheertex rip-resistant tights, is facing financial difficulties due to impending US tariffs and challenges in securing funding. SRTX temporarily laid off 40% of its staff as it grapples with a potential 41% tax on its US shipments, which comprise 85% of its sales. The company has raised approximately $250 million USD to date but is still not profitable, with significant annual losses. Homuth’s decision to step down is part of an effort to secure a crucial funding deal. SRTX has been adjusting its business strategy by sourcing materials from the US and pivoting from direct-to-consumer sales to wholesale, partnering with major brands like H&M and Macy’s.