Get All Access for $5/mo

Viral Video Exposes How One Luxury Fashion Company Destroys Unwanted Merchandise The company has since announced that it's changing its goods policies.

By Chloe Arrojado Edited by Jessica Thomas

Edward Berthelot | Getty Images

Luxury fashion company Coach has been in hot water over the past week after a TikToker exposed its practices for disposing of unwanted goods.

Under the username @thetrashwalker, TikTok user Anna Sacks says Coach has been slashing unwanted merchandise so that it can qualify for a tax loophole for being "accidentally destroyed."

@thetrashwalker

##coach ##donatedontdump ##retailmademe ##dumpsterdiving ##shopping ##climatechange ##haul ##free ##eco ##recycle ##donate ##nyc ##thrift ##repair ##fashion ##style

♬ Waltz of the Flowers - The Nutcracker - Pyotr Ilyich Tchaikovsky

In the video, Sacks holds up various Coach bags with visible slashes through them while commenting on the luxury brand's practices.

"[Coach] is a publicly traded company, but this is not disclosed anywhere," Sacks says in the TikTok, which has since garnered 2.6 million views and more than 600,000 likes.

Sacks also points out Coach's paradoxical approach by talking about the company's repair policies. The brand offers a repair service for its bags, which the brand says is another small thing it can do to "keep bags out of landfill and reduce our impact on the planet."

Related: It's Official: Customers Prefer Sustainable Companies

Coach has not responded to the video. However, the brand has since created a post on Instagram addressing its unwanted goods practices.

In the Instagram post, the company says that it will no longer destroy damaged or unsalable goods in order to maximize product reuse. The post also mentions that Coach donated $55 million last year to support low-income families, people in need and workforce and education programs.

"We have now ceased destroying in-store returns of damaged and unsalable goods and are dedicated to maximizing such products reuse in our Coach Re(Loved) and other circularity programs," the post announced.

However, some Instagram users were doubtful of the brand's authenticity.

"I love how they automatically mention they donate. Performative apology, not sincere," one user commented on the post.

Others expressed hope towards change.

"I know Coach is not the only brand doing this but it's still disappointing," another wrote. "I sincerely hope what you're pledging to do from now on it's true and something you'll actually do."

Related: How to Make Sustainability More Than a Buzzword

Chloe Arrojado

Entrepreneur Staff

Editorial Assistant

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick

Branding

ChatGPT is Becoming More Human-Like. Here's How The Tool is Getting Smarter at Replicating Your Voice, Brand and Personality.

AI can be instrumental in building your brand and boosting awareness, but the right approach is critical. A custom GPT delivers tailored collateral based on your ethos, personality and unique positioning factors.

Business News

You Can Now Apply to Renew Your U.S. Passport Online — But There's a Catch

The U.S. State Department officially launched the beta program this week.

Business News

Is the AI Industry Consolidating? Hugging Face CEO Says More AI Entrepreneurs Are Looking to Be Acquired

Clément Delangue, the CEO of Hugging Face, a $4.5 billion startup, says he gets at least 10 acquisition requests a week and it's "increased quite a lot."

Growing a Business

He Immigrated to the U.S. and Got a Job at McDonald's — Then His Aversion to Being 'Too Comfortable' Led to a Fast-Growing Company That's Hard to Miss

Voyo Popovic launched his moving and storage company in 2018 — and he's been innovating in the industry ever since.

Business Ideas

63 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.

Business News

Apple Reportedly Isn't Paying OpenAI to Use ChatGPT in iPhones

The next big iPhone update brings ChatGPT directly to Apple devices.