BALEMATRIXWHOLESALE BALE
Wholesale EnquiryCustom Quote

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.

  1. Markdowns and sales

    Reduced prices in the brand’s own shops and online.

  2. Moving or holding stock

    Transferring it to stores or markets with more demand, or keeping it for a later season.

  3. Outlets and off-price retail

    Outlet stores and discount retailers that sell past-season goods.

  4. External bulk buyers

    Liquidators and stocklot traders who buy surplus in bulk, often on conditions set by the brand.

  5. Donation

    Giving wearable goods to charities.

  6. Recycling

    Turning goods that cannot be reused into fibre or other material.

  7. 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.

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.

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.

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.

Verify branded surplus before buying

Send Wholesale Enquiry

Summary for general information, not legal advice. Laws and company policies change; check the current versions of the sources listed.

AI WHOLESALE ASSISTANT

Balematrix Wholesale Assistant

You are talking to an AI assistant, not a person. It cannot confirm prices, stock or delivery. The Balematrix team confirms all commercial terms.