I feel like a doormat

I really don't like this story. If he wants to get his girl expensive clothes, then BUY it. If he can't afford it then don't steal it from your good friend. It makes me wonder if he had the motive from the time that he insisted that you leave it at his house.

I would talk to him, tell him I saw the videos and know what went down. If he at least gave back the money or got the items back, I wouldn't completely cut him off. but I wouldn't trust him the same. It would be a downgrade to acquaintance.

You were right with what you did by not just taking this.

I agree with your first paragraph. He may have agreed to keep the clothes with the intention of stealing. This may be true and makes the situation even worse if the theft was planned. But I disagree with the 2nd paragraph. I would cut him off no matter what.
 
You've mentioned that he's done shady things to you before. Let this be the end of it and if necessary sue for the clothes he stole. You'll need to know exactly what he took though so you need to do some inventory.
 
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