This paper explores the potential for collaborative governance in the textile sector to act as a catalyst for sustainability transformation. The article originated from a 4-year research project examining a multi-stakeholder initiative (MSI), the German Partnership for Sustainable Textiles. It sheds light on the complex but interdependent connections between collaborative governance and personal relationships. While emphasising the role played by MSIs in creating important space for negotiating interests, it points towards the co-benefits of building relationships beyond stakeholder boundaries. Obstacles such as governance structures and the fragmentation of the governance landscape hinder opportunities for personal, political, and practical transformation. While highlighting the importance of private governance, it also stresses the role of state regulation in global economies, e.g. in the current debate on the EU Due Diligence Act. Finally, suggestions are made for designing governance spaces that support the development of social relationships while promoting transformation by ensuring the equal participation of stakeholders, employing learning and facilitation experts, and promoting joint decision-making processes.