Hada, which has 60 stores in Hungary and controls about a third of the market by its own estimate, will open the 1.6 million euro sorting hall in eastern Hungary next year, adding 155 jobs to bring its workforce to around 900 people.

The firm imports 30-40 tonnes of used clothes per week from Britain- its main sourcing market. It has grown into an operation with annual turnover of 32.4 million euros ($40 million), from a family business started in 1995 and run from a decrepit hall in a remote village near the border with Ukraine.

In Poland, the region's biggest economy, over 40 percent of people shop for second-hand clothes regularly and 100 million euros worth of used clothes were imported in 2013, up from about 60 million on average in the previous years. They mainly come from Britain, Germany and Scandinavia.

Poland was the only EU member to avoid a recession during the global crisis but its recovery is also slowing as the Ukraine conflict and weak European growth are taking their toll.

However the consumer spending squeeze in western Europe has had a knock-on effect for used clothes sellers further east.

"Everything's got more difficult recently, because of the crisis, and so has this business," said Jolanta, who has worked in one of Warsaw's shops for six years.

"People in England are now getting poorer, and the clothes they get rid of - they are nowhere near as good as they used to be."

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