FACTORY SECONDS AND SURPLUS
What Happens to Unsold Clothing from Fashion Brands?
Every season, some clothing does not sell at full price. What happens next differs between brands and between countries; there is no single industry practice.
This article sets out the common routes, then what some laws and brands have published about them. Where a source describes one brand or one market, it is presented as that, not as a rule for all brands.
COMMON ROUTES
Where unsold stock can go.
Brands use different combinations of these. They are possibilities, not a description of any one company.
Markdowns and sales
Reduced prices in the brand’s own shops and online.
Moving or holding stock
Transferring it to stores or markets with more demand, or keeping it for a later season.
Outlets and off-price retail
Outlet stores and discount retailers that sell past-season goods.
External bulk buyers
Liquidators and stocklot traders who buy surplus in bulk, often on conditions set by the brand.
Donation
Giving wearable goods to charities.
Recycling
Turning goods that cannot be reused into fibre or other material.
Destruction
Incineration or landfill, now restricted in some markets, as below.
WHAT SOME BRANDS HAVE SAID
Examples from brands’ own statements.
Each describes one company’s published policy at the time it was published.
- H&M Group said in 2017 that it moves garments to stores or markets with greater demand or stores them for the next season, considers external buyers of its overstock as a last resort, and sends products that fail safety tests for destruction under its safety routines.
- Burberry announced in September 2018 that it would stop destroying unsaleable products with immediate effect, and said it already reused, repaired, donated or recycled such products and would expand those efforts.
WHAT SOME LAWS SAY
Rules in France and the EU.
Two European rules now limit destruction of unsold clothing. They apply to companies selling in those markets.
- France’s anti-waste law of February 2020 (known as AGEC) requires producers, importers and distributors of new non-food products to reuse, donate or recycle their unsold goods, following the waste hierarchy, with limited exceptions such as serious health or safety risks.
- The EU’s Ecodesign for Sustainable Products Regulation, adopted in 2024, bans large companies from destroying unsold clothing, clothing accessories and footwear from 19 July 2026. Medium-sized companies are covered from 2030; micro and small companies are exempt.
- The ban has limited exceptions, for example items that are unsafe or damaged, counterfeit or infringing intellectual property, or rejected by charities and donation schemes. Companies relying on an exception must keep proof, keep records for five years and publish annual reports on what they discarded.
IN INDIA
What applies here.
We did not find an Indian rule specific to unsold apparel, or a textile take-back scheme, as of October 2026. General solid waste rules apply to waste, and government work on textile waste is ongoing.
- Brands and manufacturers in India should check current requirements with the relevant authorities or an adviser.
- For a brand-side decision process, see routing unsold clothing to reuse and recovery.
WHY IT MATTERS
Unsold stock and resale.
The Ellen MacArthur Foundation reported in 2017 that clothing production had approximately doubled in the previous 15 years, and that the average number of times a garment is worn before it stops being used had fallen by 36% compared with 15 years earlier.
- Some unsold new clothing reaches resellers as surplus or seconds; see sourcing brand surplus and deadstock.
- Surplus is not automatically free to resell; see verifying branded surplus.
- New surplus is not the same as used clothing; see the factory seconds guide.
SOURCES
Where these facts come from.
We read the pages below in October 2026, except the full text of the EU regulation on EUR-Lex, which is listed for reference: the summary of that regulation here follows the European Commission’s announcement. Laws and company policies change; check the current versions before relying on them.
- H&M Group: “H&M does not burn functioning clothes” (21 October 2017)
- FashionUnited: report quoting Burberry’s statement on unsaleable products (September 2018)
- Loi n° 2020-105 du 10 février 2020 relative à la lutte contre le gaspillage et à l’économie circulaire, Article 35 (Légifrance)
- European Commission: ban on destruction of unsold clothes and shoes enters into application (17 July 2026)
- Regulation (EU) 2024/1781 on ecodesign for sustainable products, full text for reference (EUR-Lex)
- Ellen MacArthur Foundation: A New Textiles Economy: Redesigning Fashion’s Future (2017), pages 18–19
NEXT STEP
Buying surplus for resale?
Balematrix deals in all kinds of clothing bales, including factory surplus. From any supplier, check what kind of stock a lot is, and whether it may be resold, before you pay.
Summary for general information, not legal advice. Laws and company policies change; check the current versions of the sources listed.