Lugg will be succeed by Stewart McGuffie, non-executive director at UKFT and CEO at Barnsley-based clothing manufacturer Allied Textiles. McGuffie will start in his new role on 1 January.
Lugg was appointed chairman of UKFT in May 2015 after more than two decades at the helm of high street supplier Prominent Europe.
During his nine-year-tenure as chairman, he has been working on re-establishing the association’s relevance with the industry and positioning UKFT as the unified voice to the government, alongside CEO Adam Mansell.
He helped members navigate unprecedented challenges in the industry including Brexit, the pandemic and the increasing need for sustainable practices.
Under his leadership, the association formed a Brexit board made up of representatives from textile and garment manufacturers, brands, retailers and other stakeholders, to put together a strategy to present to the government.
UKFT also took over as the sector skills body for fashion and textiles in 2017 and has been working to reduce industry skills gaps and shortages.
Reflecting on his time at the UKFT, Lugg said: "One of my greatest joys has been mentoring companies of all sizes, helping them add value, become more profitable, and, most importantly, survive.
"Ours is fundamentally a people business, and my greatest concern as I step down is the lack of opportunities for young people to gain firsthand experience.
"As I hand over the reins to the next chairman Stewart McGuffie, I do so with immense pride in what we’ve accomplished together. This role has been a privilege and a pleasure, and I leave with a sense of optimism for the future."