Following economic crises, the evolution of industrial districts (IDs) has frequently caused the crisis within entire urban systems. Being IDs based on individual will and competences, rather than on big industries, their failure can compromise the city's identity. The Italian manufacturing industry consistently relied on this process, and this paper analyzes the case study of Prato, a medieval core city in central Italy that, since the mid‐twentieth century, developed a world‐class textile district based on a polycentric production structure and widespread family entrepreneurialism. During the global economic crisis of the early 2000s, production almost stalled, leaving the city without the core of a collective identity, but with a legacy of empty spaces. Significant foreign migration, in particular from China, filled these spaces, consolidating the clothing sector. The study investigated the city's contemporary identities resulting from the rapid change in people, activities, and spaces.