Polarn Och Pyret, the Scandinavian progenitor to Hanna Andersson, sells children's and women's cotton clothing in bright basic colors and (famously) lots of stripes. They've incorporated organic cotton into much of their line, and for two years have also allowed customers to use their web site to freely resell (better than Ebay!) the clothes, which of course cost a bit more than the super cheap stuff you can buy at places like H&M;, but last longer.
Now the the even more preppy Boomerang clothing company will offer another sort of "recycling". Starting with the 2009 Spring line, Boomerang will let you bring in Junior collection clothes to retail stores, which it will then resell as second-hand (after washing). The customer gets a discount on the next purchase. Camino, Sweden's lifestyle sustainability magazine, says Boomerang has copied the concept from Japan's Uniqlo, which twice a year accepts its brand name items back for "recycling" (about 150,000 items come in and many are donated to refugees). But it was Patagonia who definitely blazed the trail in letting customers bring in Capilene for recycling (it now takes back fleece and cotton T's, too). It's great other retailers are experimenting with the concept. Via ::E24 (Swedish)