Approximately 65% of a garment's climate impact stems from fabric production. With 53 M tons of fibre produced every year and 87% ending in landfills, the fashion industry is polluting and wasting precious resources. Therefore, waste prevention and recapturing value become essential. Our research explores the development of a new circular design strategy (CDS)-Refashion, for service innovation through a design thinking process. Grounded in sustainable design strategies and advanced manufacturing technology, the Refashion CDS aims to enable multiple reutilization of fabric before fibre recycling. This is showcased via a proof-of-concept collection launched on the market in 2022, where three pre-designed multifunctional fabric blocks create 11 different garments, accompanied by a diagram showcasing the product-service system's closed-loop material flow.