One man's trash is another man's treasure.
They will be able to sell them for pennies on the dollar so that some fraction of them can be resold for cheap in Africa or somewhere else poor. Those companies can then dispose of them however they wish.
The reseller makes a small profit, and the original moanufacturer gets the PR of "clothing the poor" or whatever.
And, as usual, EU regulations achieve absolutely nothing -- if anything, this is worse than nothing.
Both of those situations sound like a net win.
Isn't it a thing that poor countries can't get their own textile and clothing companies going because of donations or cheap used clothes? I'm fairly certain that's a thing.
There seems to be 3-4 other issues colluding with that. If customers prefer or can't afford new domestic clothes, then it would make it hard for a business to succeed.