The past decade has seen a flood of rental and resale startups  many with names that practically announced their sustainability mission: Rotaro, By Rotation, Cercle, The Circle. But after years of experimentation, the sector is shifting. Instead of dozens of small players operating separately, the industry is starting to consolidate, building larger, integrated platforms that combine rental, resale, sourcing and logistics in one place.

This week, British company MyWardrobe HQ announced its third major acquisition in three years: luxury handbag rental service Cocoon. Cocoon previously had Kering as a minority investor, but the fashion group sold its stake earlier this year, separate from the MyWardrobe HQ merger.

Now united under the Cocoon name, the combined platforms say they represent 170,000 users, over £10 million in managed inventory, and partnerships with Harrods, Burberry, Giambattista Valli, and Emilia Wickstead.

Vogue Business sat down with MyWardrobe HQ CEO Coco Baraer Panazza and Cocoon founder Matt Heiman to talk about what this merger means not just for them, but for the future of circular fashion.

Why MyWardrobe HQ Started Buying Up Competitors

Coco explains that their acquisition trail began in 2023 with Rotaro, which brought in a younger audience and a tightly curated selection of contemporary pieces. In 2024, they merged with Cercle, her own company, which focused on making circular fashion feel as exciting as buying something new.

Cocoon was the missing piece: the leader in luxury handbag rental, with deep expertise in bag repairs, subscription models, and understanding what high-end customers want. MyWardrobe HQ, on the other hand, brought the operational backbone  logistics, data-driven systems, and strong brand partnerships.

Why Combine All These Circular Platforms?

According to Coco, the industry is shifting from disjointed “experiments” to a fully integrated circular ecosystem. By merging rental, resale, subscription services, sourcing and logistics, they’re building an operating system for circular luxury  a single infrastructure that has been missing in the UK market.

This approach cuts duplicate costs, creates a smoother customer journey, and allows every item in their inventory to work harder and earn more over time.

Why Cocoon Wanted to Merge

Matt explains that Cocoon’s customers are loyal but extremely demanding. As the business evolved, they needed support to expand into resale and scale faster. Joining forces allows them to offer their community more services without reinventing the entire infrastructure themselves.

Why They’re Keeping the Cocoon Name

Even though MyWardrobe HQ has strong brand recognition, “Cocoon” better reflects the transformational moment the industry is in. The name signals change — from small pilots to integrated, large-scale circular systems.

How Brands Are Changing Their Approach

Brands used to dip their toes into rental or resale with small, separate pilots. Now they’re fully integrating circularity into their e-commerce systems.

For example:

• A recent white-label resale program MyWardrobe HQ launched generated 7,000 units in five months  a record for them.

• The company onboarded 50 brands to their sample sale program in just three months.

As circular fashion is projected to hit $10 billion by 2030, brands are treating resale and rental as part of their retail ecosystem, not a side project.

How Customers Are Changing Too

Millennials were the early adopters of circular fashion. Now, older women in their 40s and 50s are driving engagement  not just for sustainability, but for smart shopping. They want wardrobes that hold value.

Coco says customers are increasingly treating their pieces as cultural assets — items whose value can rise based on context and designer activity.

Example:

• The Chloé Paddington bag used to resell for around £200.

• After it hit the Fall/Winter 2025 runway, demand jumped 48% in one week and resale prices now average £750–£1,000.

They even advise clients on when not to sell — such as waiting on Dior’s Saddle bag as Jonathan Anderson’s arrival is expected to increase its value.

The Environmental Question

Circular fashion was marketed as a sustainability fix, but the actual impact is still difficult to measure.

Matt highlights two realities:

• Rental increases usage (high utilization rates)

• Cocoon tries to buy inventory that doesn’t depreciate easily and embraces a “wabi-sabi” philosophy — wear makes an item more beautiful.

Coco adds that scaling the model gives them more data to help brands adjust production — the real path to environmental impact.

Is Luxury Quality Declining?

Both leaders say yes — they’re seeing firsthand a drop in quality at certain luxury houses. But this decline is ironically pushing more customers into circular fashion as they seek better value and craftsmanship through resale.

What the New Cocoon Ecosystem Will Look Like

• A membership-based hub combining luxury rental and resale

• New subscription tiers launching soon

• A stronger focus on luxury resale and sample sales

• A growing luxury sourcing service

• Reduced short-term, “rent for a few days” offerings — those aren’t profitable at scale

Coco’s vision?
“The Soho House of circular luxury” — an insider world where fashion lovers can shop, rent, resell, or source coveted items.

Is Rental Profitable Yet?

Not fully.

• Sample sales: 10–12% net profit per sale

• Resale: strong profitability

• Rental: still the weak link, which is partly why consolidation is so important

They believe merging operations is the only way to make rental viable long-term.

What’s Next?

More acquisitions are very likely. As Coco puts it:

“Circularity doesn’t work in a fragmented market.”

Consolidation — once rare in the sector — is now the roadmap for circular fashion’s next chapter.