To achieve the ultimate potential of circular economy (CE), cascading plural circular business models (CBMs) can essentially slow down, narrow, and close resource loops while simultaneously achieving long-life products. Operating in cascades, however, organizations face many paradoxical tensions (PTs) due to different goals, designs, and resource requirements, as well as demands for new and unusual collaborations. Having a narrative literature review, 7 categories of PTs that could hinder scaling CBMs in cascaded systems in the textile and clothing (T&C) industry were identified. Conducting 20 semi-structured interviews with European brands/retailers, charities (secondhand stores), sorters, and recyclers who operate in cascading, this paper has contextualized four paradox classes (organizing, performing, belonging, and learning) of Smith and Lewis’s (2011) paradox theory framework along those 7 categories; while mostly classified as organizing and performing, categories 5 (between circular supply structure and governance alternatives) and 1 (between scale and scope) are reported as the most prominent among T&C actors, respectively. Although those prominent categories can directly hinder the scalability of cascading CBMs, those that appeared internally and were associated with a particular CBM could indirectly affect scaling.