Purpose: The purpose of this research is to examine the challenges and opportunities fashion retailers face when implementing used textile collection schemes. Separate textile collection is a requirement under the Extended Producer Responsibility legislation, by the European Union. Design/methodology/approach: An exploratory qualitative approach was used to gain in-depth understanding of the challenges and the opportunities for fashion retailers regarding implementing used clothing/textile take-back programs. Data was collected by conducting semi-structured interviews with fashion retailers and a third-party textile collection company in Europe. Findings: The findings of this research suggest that fashion retailers face challenges when implementing textile collection schemes. More specifically, the EPR legislation for textiles is not clear, according to the interviewees, which presents a major challenge and causes confusion about the role fashion retailers play and their responsibility in collecting used garments and textiles. Furthermore, fashion retailers collect a small amount of used garments and textiles compared to municipalities and third-party textile collection companies, deeming it necessary for fashion retailers to scale up textile collection. Textile take-back programs have the capacity to create opportunities, such as forming collaborations, creating jobs, using technology as well as combining textile collection with other circular economy activities. Future strategies to overcome the challenges they face are also presented. Originality/value: There is limited research on fashion retailers’ engagement in operating textile collection systems. Consequently, this study is considered valuable as it contributes to the literature by addressing the challenges and opportunities fashion retailers encounter in response to the pressing demand for solutions for separate textile collection.