The Wall Street JournalThe Wall Street Journal

Fashion industry gets torn by Europe’s soaring energy bills

By Stacy Meichtry, Jenny Strasburg

18 Oct 2022 · 7 min read

The energy crunch in Europe is now begun to affect the fashion industry as factories and workshops where energy bills were a fraction of their business have now become an existential threat.

Curated by informed

The energy crisis that has closed steel mills and aluminum smelters across Europe is now spreading to the continent’s fashion industry.

Thousands of small factories and workshops that supply brands such as Gucci and H&M have watched their business models unravel amid the surge in natural-gas and electricity prices following Russia’s invasion of Ukraine and its decision to reduce the flow of gas to the continent. Energy costs for many textile makers have risen from about 5% of production costs to around 25%, slashing their profit margins, according to data from European textiles and apparel trade group Euratex.

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