Fashion
Europe’s textile waste management system under critical strain: BCG
Several major players are halting operations or going bankrupt, triggering a breakdown in the system, the report, titled ‘Textile Waste at a Tipping Point: Unlocking Europe’s Circular Potential’, said.
In France, social enterprise Le Relais stopped all textile collection in mid-2025 and began unloading unsorted waste outside major retailers to protest underfunding. Without emergency support, it warned it would not survive beyond year-end.
Europe’s collection of textile waste and sorting infrastructure is under critical strain, according to a Boston Consulting Group report.
Several major players are halting operations or going bankrupt, triggering a breakdown in the system, it noted.
The main reason is a funding gap: eco-organisations and public authorities are not paying enough per tonne collected to cover operational costs.
Smaller collectors are also closing quietly. In Germany, two major collectors, SOEX and Texaid, have filed for insolvency respectively in October 2024 and June 2025 due to collapsing export markets and rising sorting costs.
In the United Kingdom, closures and layoffs have hit textile recyclers, which include Textile Recycling International, which entered administration in early 2024. The Textile Recycling Association has warned of a ‘sector-wide collapse’ as processing capacity disappears and resale prices plummet.
At the heart of this collapse is a funding gap: eco-organisations and public authorities are not paying enough per tonne collected to cover operational costs. Meanwhile, saturated second-hand markets, fast-fashion waste and stricter export conditions are all compounding the pressure.
Without urgent intervention, Europe’s textile circularity ambitions risk unravelling, the report cautions.
In Europe, only around 1 per cent of textile waste is recycled into new textiles. The rest is either reused through second-hand markets, downcycled into lower-value applications like rags or insulation, processed into solid recovered fuel (SRF) or sent to landfill or incineration.
Landfilling is expected to decline sharply by 2035—from 26 per cent of total textile waste in 2024 to 17 per cent in 2035—driven by regulatory and environmental pressure. The EU Landfill Directive mandates that municipal waste landfilling fall below 10 per cent by 2035, prompting many countries to implement landfill taxes and bans on specific products.
Reuse is the most sustainable option and has been enabled by charity networks, resale platforms, and exports. Yet the ecosystem is under pressure and the second-hand textile market in Europe is stalling slightly, driven by the rise of ultra-fast fashion and the saturation of traditional export channels, the report notes.
As resale prices fall and collection costs rise, operators are left with declining margins and increasing volumes of low-quality, unsellable garments. Incineration is still carbon-intensive and risks undermining climate objectives unless paired with mitigation measures, it adds.
Fibre2Fashion News Desk (DS)
The projects will cover 68,000 square metre and generate 4,600 direct jobs.
Suez Canal Economic Zone (SCZone) chairman Waleid Gamal El-Dein and Ismailia province deputy governor Ahmed Essam El-Din laid the foundation stones.
Foundation stones were recently laid for two projects in Egypt’s West Qantara Industrial Zone by two Chinese-backed Firms.
Hui Zhou Top New Garment will set up an export unit for RMG and sportswear, with production likely to begin in July 2026.
Changzhou Top Credit’s project will manufacture fabrics and textiles, with an expected annual output of over 28,000 tonnes, 80 per cent of which will be exported.
Hui Zhou Top New Garment will set up an integrated, export-oriented factory for readymade and sportswear apparel, with production expected to begin in July 2026. The 28,000-square metre facility valued at $7.2 million will employ 4,000 workers and produce more than 25 million pieces annually, domestic media outlets reported.
With an investment of $13.3 million, Changzhou Top Credit’s project will manufacture fabrics and textiles on a 40,000-sq m site, with an expected annual output exceeding 28,000 tonnes, 80 per cent of which will be exported. The factory will employ 600.
El-Dein said the first phase of the industrial zone’s development has already drawn 44 projects, with total investments worth $1.17 billion and creating 60,165 jobs in less than two years.
Fibre2Fashion News Desk (DS)
The operating income fell 62.2 per cent to $29.1 million, reflecting higher tariffs, increased investment in product quality and store expansion. Adjusted operating income dropped 48.9 per cent to $39.4 million, with an adjusted operating margin of 5.2 per cent versus 10.2 per cent in the previous year.
American apparel company Carter’s, Inc, has reported flat Q3 FY25 sales at $757.8 million, while profit fell sharply due to higher tariffs and restructuring costs.
Net income dropped to $11.6 million from $58.3 million, with adjusted EPS down to $0.74.
The company plans 300 job cuts and 150 store closures to save $35 million annually, while tariffs are expected to impact Q4 earnings by $25–35 million.
Net income plunged to $11.6 million, or $0.32 per diluted share, from $58.3 million, or $1.62 per diluted share, a year earlier. On an adjusted basis, net income was $26.8 million, or $0.74 per diluted share, compared to $59 million, or $1.64 per diluted share, in Q3 FY24, Carter’s said in a press release.
“Our third quarter performance reflected continued improvement in US retail business demand as we achieved positive comparable sales and improved pricing for the second consecutive quarter,” said Douglas C Palladini, chief executive officer (CEO) and president. “However, elevated product costs, in part due to the impact of higher tariffs, as well as additional investment, weighed meaningfully on our profitability.”
For the first nine months (9M) of FY25, Carter’s has reported net sales of $1.97 billion, down 0.6 per cent YoY. Adjusted operating income declined nearly half to $86.5 million, with adjusted earnings per share (EPS) at $1.57, compared with $3.43 a year earlier. Net cash used in operations totalled $136.3 million, compared to net cash inflow of $11.3 million in FY24.
The company has initiated a productivity drive, including the reduction of 300 office-based roles (around 15 per cent of its workforce) and the closure of 150 stores across North America by 2026, measures expected to generate annual savings of about $35 million beginning in 2026, added the release.
Looking ahead, the company warned that new US import tariffs could have a pre-tax earnings impact of $200–250 million annually. Vietnam, Cambodia, Bangladesh, and India now account for about 75 per cent of Carter’s sourcing, with China contributing less than 3 per cent. The company expects a $25–35 million hit to pre-tax income in Q4 FY25 due to tariff pressures.
Carter’s has also secured commitments for a new five-year $750 million asset-based revolving credit facility to strengthen liquidity and is evaluating refinancing options for its $500 million senior notes maturing in 2027.
Fibre2Fashion News Desk (SG)
Egypt’s textile and apparel imports from Turkiye rose 7.7 per cent year-on-year to $154.68 million in H1 2025, driven mainly by higher fabric demand from garment exporters.
Fabric imports surged 27.75 per cent, while yarn imports dipped slightly.
Despite modest overall growth, Turkiye remained Egypt’s second-largest supplier of fabrics and apparel and third-largest in yarn.
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