Chanel ends shredding of unsold goods ahead of EU ban

Chanel has stopped shredding products that cannot be sold and now directs them to L’Atelier des Matières, its recycling business for luxury and premium goods.

The French luxury house confirmed the shift on this week, just ahead of a European Union prohibition on the destruction of unsold apparel, clothing accessories and footwear coming into force for for large companies.

Chanel’s confirmation came after evidence was heard in a Hong Kong criminal trial over 724 handbags and wallets earmarked for destruction in 2017. Prosecutors said that, back then, Chanel Hong Kong was disposing of 10,000 to 20,000 discontinued products every six months. However Chanel disputed this. 

“The figure mentioned during the trial does not reflect Chanel’s current global practices, which have evolved in line with its sustainability commitments,” the company said in a statement provided to WWD.

Chanel said all products worldwide that cannot be commercialised, from deadstock to defective goods, are now managed through L’Atelier des Matières. An initiative created by Chanel in 2019, the business processes products for reuse within circular material supply chains.

Nevold provides an industrial recycling network

L’Atelier des Matières is part of Nevold, Chanel’s independent business-to-business hub for circular materials, which was formally launched in 2025. The luxury house put between €50 million and €80 million into its development

Nevold also incorporates wool-spinning mill Filatures du Parc and upcycled natural-materials specialist Authentic Material. It was established separately from Chanel to supply recycled materials to other fashion companies and industrial sectors.

Its products include thread combining virgin and end-of-life fibres, as well as recycled leather used for internal reinforcements in handbags and shoes. Around 30% of Chanel handbags and 50% of its shoes are said to contain these recycled components.

EU destruction ban takes effect on 19 July

Chanel’s current setup aligns with the EU’s Ecodesign for Sustainable Products Regulation. Under the rules, large companies are barred from destroying unsold apparel, clothing accessories and footwear starting 19 July 2026, subject to specified exemptions.

Companies must also disclose information about unsold consumer products discarded as waste. A standardised reporting format will apply from February 2027, while disclosure duties already cover large businesses.

The European Commission estimates that between 4% and 9% of unsold textiles in Europe are destroyed before they are ever worn, creating about 5.6 million tonnes of CO₂ emissions.

Medium-sized companies are due to come under the destruction ban in 2030. National authorities will oversee compliance, with exemptions covering circumstances such as safety concerns and product damage.