> Seems bizarre. It's not like companies didn't want to sell it--they'd prefer to have the revenue. This is just kicking them then while they're down. I wonder if it will reduce risk-taking since it increases the downside of launching an unpopular product.

Companies (Burberry is mentioned, but it goes unsaid that others engage in it) routinely burn stock to preserve exclusivity[1]. It's a pretty serious issue.

[1] https://www.vogue.com/article/fashion-waste-problem-fabrics-...

The majority of clothing produced is not for exclusive brands.

This is a very niche feature of low volume brands.