Textile collection firms at risk as emergency aid stalls

France’s textile recovery sector is on the brink, according to a warning issued by Le Relais—one of the country’s largest collection and sorting operators—on July 9. As pressure mounts, fashion retailers and the eco-organization Refashion are engaged in two simultaneous negotiations, the details of which FashionNetwork.com can exclusively reveal.

Emmanuel Pilloy, president of Le Relais France, described the textile recovery sector as being at a breaking point. He pointed to Refashion—the eco-organization funded by industry stakeholders to oversee end-of-life management for clothing and footwear—as a key source of the problem.

“Refashion’s current contribution to sector players—those handling collection, sorting, and textile-linens-shoes (TLC) recovery—stands at just €156 per ton,” Pilloy told FashionNetwork.com. “That figure is far too low to sustain the industry. It places 3,000 jobs at risk—2,000 of them at Le Relais France, which handles 80% of the country’s textile collection.”

Le Relais, along with other field operators, is demanding an increase to €304 per ton, claiming that this is the minimum amount needed to maintain operations, safeguard jobs, and support long-term sustainability. This would require an additional €30 million in emergency aid—on top of the €6 million granted in January—to support collection and sorting operations that have lost major resale channels to lower-cost Asian sources.

According to FashionNetwork.com sources, this €30 million figure was at the center of a high-stakes meeting at the Ministry of Ecological Transition on Friday, July 4. Retailers had reportedly been preparing for a government announcement that evening. However, no statement followed—possibly due to a letter from fashion brands sent to the executive branch later that day. A similar meeting on June 26 also ended without results.

Negotiating a second emergency aid package

“We were called in that same Friday morning and expected a proposal by evening,” said Aurore Médieu, ecological transition and circular economy lead at ESS France (the French Social and Solidarity Economy organization). “But there was so much lobbying during the day—mainly by marketers and Refashion—that by the time we arrived, the ministry had no offer on the table.” She added that some collectors are now unable to pay July salaries.

From the perspective of Alliance du Commerce, which represents retail fashion, footwear chains, and department stores, the proposed €30 million is simply not viable.

“We already paid an exceptional €6 million in January, on top of the €35 million originally planned,” Yohann Petiot, the organization’s managing director, told FashionNetwork.com. “Adding another €30 million would represent a 25% hike in eco-contributions. That’s nearly double the budget. Once the state accepts these figures, they won’t come back down.”

According to sources, the French government ultimately proposed €190 per ton—a compromise that would amount to €19 million in added aid from brands and retailers.

Still, the fashion sector is wary. Many fear that accepting any increase would lock in higher contribution standards going forward. The Alliance du Commerce also criticized the lack of obligations tied to this new funding, particularly regarding transparency and governance among collection operators.

There are also concerns over opportunism—some fear that entities with foreign operations could use the funds to relocate previously exported stock back to France. Others accuse ESS actors of engaging in “employment blackmail.”

A problem that goes beyond the ESS?

Yann Rivoallan, president of the French Federation of Women’s Ready-to-Wear (FFPAPF), expressed frustration with the situation.

“There’s intense lobbying, including claims and calculations for inflated compensation. They’re asking for double the contribution,” Rivoallan told FashionNetwork.com on July 1. “We’re open to discussion—but not without transparency. Right now, their numbers and methods raise too many questions.”

Petiot echoed this concern: “The state no longer has the budget to subsidize the ESS sector, so the pressure falls entirely on brands. But we can’t hand over retailer money without oversight. We’re demanding verification and accountability in what remains a very opaque space.”

“There’s no employment blackmail. Job cuts are a real threat,” countered Aurore Médieu. “The Ministry of Ecological Transition tells us this isn’t its concern, but we challenge that. How will they explain to consumers that half of the collected clothing could be incinerated by 2028?

“If the government’s target is to collect 425,000 tons, with half set aside for recycling—we simply don’t have the infrastructure to process it all. Without proper support, we’ll lose critical players in the reuse ecosystem due to the collapse of export markets.”

She also pointed out that this is not just an ESS issue. Private players are also affected—including Gebetex, a textile recovery firm near Paris, whose director, Jean-Mayeul Bourgeois, recently discussed the challenges posed by the growing influx of Asian garments.

Beyond the emergency aid debate, Refashion is also renegotiating its long-term operations. The talks officially began on June 27, and as FashionNetwork.com has learned, the schedule is tight—implementation is set for January. The outcome could significantly reshape how financial support is allocated between collection, sorting, and recycling across the entire textile value chain.