Chile's Desert Dumping Ground for Fast Fashion Leftovers

Piles of used clothes have been discarded in Chile's Atacama Desert. MARTIN BERNETTI AFP
Piles of used clothes have been discarded in Chile's Atacama Desert. MARTIN BERNETTI AFP
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Chile's Desert Dumping Ground for Fast Fashion Leftovers

Piles of used clothes have been discarded in Chile's Atacama Desert. MARTIN BERNETTI AFP
Piles of used clothes have been discarded in Chile's Atacama Desert. MARTIN BERNETTI AFP

A mountain of discarded clothing including Christmas sweaters and ski boots cuts a strange sight in Chile's Atacama, the driest desert in the world, which is increasingly suffering from pollution created by fast fashion.

The social impact of rampant consumerism in the clothing industry -- such as child labor in factories or derisory wages -- is well-known, but the disastrous effect on the environment is less publicized.

Chile has long been a hub of secondhand and unsold clothing, made in China or Bangladesh and passing through Europe, Asia or the United States before arriving in Chile, where it is resold around Latin America.

Some 59,000 tons of clothing arrive each year at the Iquique port in the Alto Hospicio free zone in northern Chile.

Clothing merchants from the capital Santiago, 1,800 kilometers (1,100 miles) to the south, buy some, while much is smuggled out to other Latin American countries. But at least 39,000 tons that cannot be sold end up in rubbish dumps in the desert.

"This clothing arrives from all over the world," Alex Carreno, a former employee in the port's import area, told AFP.

"What is not sold to Santiago nor sent to other countries stays in the free zone" as no one pays the necessary tariffs to take it away.

"The problem is that the clothing is not biodegradable and has chemical products, so it is not accepted in the municipal landfills," said Franklin Zepeda, the founder of EcoFibra, a company that makes insulation panels using discarded clothing.

"I wanted to stop being the problem and start being the solution," he told AFP about the firm he created in 2018.

Water waste
According to a 2019 UN report, global clothing production doubled between 2000 and 2014, and the industry is "responsible for 20 percent of total water waste on a global level."

To make a single pair of jeans requires 7,500 liters (2,000 gallons) of water.

The same report said that clothing and footwear manufacturing contributes eight percent of global greenhouse gases, and that "every second, an amount of textiles equivalent to a garbage truck is buried or burnt."

Whether the clothing piles are left out in the open or buried underground, they pollute the environment, releasing pollutants into the air or underground water channels.

Clothing, either synthetic or treated with chemicals, can take 200 years to biodegrade and is as toxic as discarded tires or plastics.

Not all the clothing goes to waste: some of the poorest people from this region of 300,000 inhabitants pick through the dumps to find things they need or can sell in their local neighborhood.

Venezuelan migrants Sofia and Jenny, who crossed into Chile only a few days earlier on a 350-kilometer journey, search through a clothing pile as their babies crawl over it.

The women are looking for "things for the cold," given the desert's nighttime temperatures drop to levels unheard of in their tropical homeland.

Changing attitudes
Chile, the richest country in South America, is known for the voracious consumerism of its inhabitants.

Fast fashion advertising "has helped to convince us that clothing makes us more attractive, that it makes us stylish and even cures our anxiety," said Monica Zarini, who makes lamp shades, notebooks, containers and bags from recycled clothing.

Things are changing, though, according to Rosario Hevia, who opened a store to recycle children's clothes before founding in 2019 Ecocitex, a company that creates yarn from pieces of discarded textiles and clothing in a poor state. The process uses neither water nor chemicals.

"For many years we consumed, and no one seemed to care that more and more textile waste was being generated," she said.

"But now, people are starting to question themselves."



Etro Founding Family Exits Group as New Investors Including Türkiye's RAMS Global Join

L Catterton, a private equity firm backed by French luxury giant LVMH, will remain Etro's majority owner. Reuters
L Catterton, a private equity firm backed by French luxury giant LVMH, will remain Etro's majority owner. Reuters
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Etro Founding Family Exits Group as New Investors Including Türkiye's RAMS Global Join

L Catterton, a private equity firm backed by French luxury giant LVMH, will remain Etro's majority owner. Reuters
L Catterton, a private equity firm backed by French luxury giant LVMH, will remain Etro's majority owner. Reuters

The founding family of Italian fashion house Etro has sold the minority stake it still owned in the brand to a group of investors including Turkish group RAMS Global, the company said on Friday.

L Catterton, a private equity firm backed by French luxury giant LVMH, will remain Etro's majority owner and "will continue to actively support the brand's long-term growth strategy," Etro added, according to Reuters.

The new investors comprise also Italian fashion group Swinger International and small private equity firm ⁠RSI.

In addition to buying the stake, they all subscribed to a capital increase that will lower L Catterton's holding in Etro to between 51% and 55% from around 65%.

When including both the acquisition and the capital increase, the deal is worth around 70 ⁠million euros ($82 million), two sources close to the matter said. Etro did not disclose financial details.

Chief Executive Fabrizio Cardinali will remain at the helm, while Faruk Bülbül, representing RAMS Global, will become chairman of the board.

L Catterton bought a 60% stake in the brand known for its paisley motif four years ago, and it slightly increased the holding over the years.

The company, founded by Gimmo Etro in 1968, has ⁠been struggling with its turnaround. Last year it posted a net loss of 23 million euros with net revenues declining to 245 million euros from 261 million euros, according to filings with the local chambers of commerce reviewed by Reuters.

Rothschild advised L Catterton and the Etro family on the deal.

Rothschild had been hired in 2024 to look for a new investor who could buy all or part of the Etro fashion group, sources had previously told Reuters.


Paris Court Rejects Bid to Suspend Shein Platform in France

A customer holds shopping bags with a Shein logo in the first physical space of Chinese online fast-fashion retailer Shein on the day of its opening inside the Le BHV Marais department store, the Bazar de l'Hotel de Ville, in Paris, France, November 5, 2025. REUTERS/Sarah Meyssonnier/File Photo
A customer holds shopping bags with a Shein logo in the first physical space of Chinese online fast-fashion retailer Shein on the day of its opening inside the Le BHV Marais department store, the Bazar de l'Hotel de Ville, in Paris, France, November 5, 2025. REUTERS/Sarah Meyssonnier/File Photo
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Paris Court Rejects Bid to Suspend Shein Platform in France

A customer holds shopping bags with a Shein logo in the first physical space of Chinese online fast-fashion retailer Shein on the day of its opening inside the Le BHV Marais department store, the Bazar de l'Hotel de Ville, in Paris, France, November 5, 2025. REUTERS/Sarah Meyssonnier/File Photo
A customer holds shopping bags with a Shein logo in the first physical space of Chinese online fast-fashion retailer Shein on the day of its opening inside the Le BHV Marais department store, the Bazar de l'Hotel de Ville, in Paris, France, November 5, 2025. REUTERS/Sarah Meyssonnier/File Photo

A Paris court on Friday rejected a government request to suspend Chinese fast-fashion platform Shein in France after authorities found illegal weapons and child-like sex dolls for sale on the fast-fashion giant’s website.

Shein welcomed the decision, saying it remains committed to strengthening its control processes in cooperation with French authorities.

“Our priority remains protecting French consumers and ensuring compliance with local laws and regulations," the company said in an emailed statement to The Associated Press.

The controversy dates to early November, when France’s consumer watchdog and Finance Ministry moved toward suspending Shein’s online marketplace after authorities said they had found childlike sex dolls and prohibited “Class A” weapons listed for sale, even as the company opened its first permanent store in Paris.

French authorities gave Shein hours to remove the items. The company responded by banning the products and largely shutting down third-party marketplace listings in France.

French officials have also asked the European Commission to examine how illegal products were able to appear on the platform under EU rules governing large online intermediaries.


Lululemon Jumps on Elliott's $1 Billion Bet Ahead of Leadership Change

FILE PHOTO: A logo is displayed inside a Lululemon outlet retail store at Bicester Village in Oxfordshire, Britain, August 21, 2024. REUTERS/Hollie Adams/File Photo
FILE PHOTO: A logo is displayed inside a Lululemon outlet retail store at Bicester Village in Oxfordshire, Britain, August 21, 2024. REUTERS/Hollie Adams/File Photo
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Lululemon Jumps on Elliott's $1 Billion Bet Ahead of Leadership Change

FILE PHOTO: A logo is displayed inside a Lululemon outlet retail store at Bicester Village in Oxfordshire, Britain, August 21, 2024. REUTERS/Hollie Adams/File Photo
FILE PHOTO: A logo is displayed inside a Lululemon outlet retail store at Bicester Village in Oxfordshire, Britain, August 21, 2024. REUTERS/Hollie Adams/File Photo

Lululemon Athletica shares rose nearly 8% in early trading on Thursday after reports Elliott Management has built a $1 billion stake in the athleisure wear maker and is working with former Ralph Lauren executive Jane Nielsen for a potential CEO role.

The Canada-based retailer said last week that Calvin McDonald will step down after nearly seven years as its top boss, sparking hopes for a leader who can reverse slowing growth and win back younger shoppers amid fierce competition from trendier players like Alo and Vuori. The stock has lost nearly half of its value this year, underscoring investor concerns over Lululemon's struggles. The company's shares were trading at $224 on Thursday.

"Elliott is famous for agitating for change. These positions aren't built overnight, so Lululemon's board probably saw this coming," said Brian Jacobsen, chief economic strategist, Annex Wealth Management.

The activist investor has been working closely for months with Nielsen, a retail veteran, a source told Reuters on Wednesday. Nielsen, who sits on the board of Cadbury parent Mondelez, has also served as finance chief at Tapestry-owned Coach.

"Lululemon is one of the most powerful brands in retail, defined by exceptional products, deeply engaged communities and significant global potential," Nielsen said in a statement to the Wall Street Journal. "I would welcome the chance to discuss this opportunity with the Lululemon board."

Elliott, Lululemon and Nielsen did not respond to Reuters requests for comment.

Analysts have said the company will need to upgrade its fabrics, use fresher designs and accelerate product launches that click with Gen Z to reclaim its "cool factor" and lure shoppers back.

With much of its sourcing tied to Asian factories facing higher import duties, Lululemon will also need to streamline its supply chain to blunt US tariff pressures and protect margins next year, analysts have said.

"Lululemon should implement fast fashions and introduce an assortment that will pull customers from Alo and Vuori - especially Gen Z customers.

Fast fashion requires a much better supply chain than is currently in use at Lululemon," said Brittain Ladd, a strategy and supply chain consultant at Florida-based Chang Robotics.

The brand's struggles have drawn sharp criticism from founder and largest individual shareholder Chip Wilson. He has also called for an urgent CEO search, led by new, independent directors with deep company knowledge to restore a product-first focus.

Wilson did not respond to a Reuters request for comment.

With a 4.3% ownership, Wilson's stake is valued at about $988 million, according to LSEG data, making Elliott one of the top shareholders in Lululemon, which is valued at nearly $25 billion.

Lululemon trades at a forward price-to-earnings ratio of 16.37, while Gap trades at 11.88 and American Eagle at 16.81, according to LSEG data.