- Italian police raided offices of luxury brands including Bulgari and Chanel over suspicions of subcontractors employing Chinese workers.
- Milan prosecutor's probe found exploitative labor conditions across supply chains, involving multiple brands like Prada, Givenchy and Dolce & Gabbana.
- Some firms were placed temporarily under administration and restrictions were lifted after promises to tighten supply chain oversight, while the government defended Italian luxury reputation.
Italian police raided the offices of several luxury brands including Bulgari and Chanel over suspicions they used subcontractors employing Chinese workers, a prosecutor said Thursday.
The other luxury brands included Brunello Cucinelli, Etro, Goyard Italie, Jacob Cohen Company, Moncler, and Stefano Ricci, Milan prosecutor Paolo Storari told AFP, confirming information published by business daily Il Sole 24 Ore.
A wide-ranging investigation by the Milan prosecutor’s office has uncovered numerous instances of exploitative work conditions in the supply chains of some of Italy’s leading fashion brands, including Prada, Givenchy and Dolce & Gabbana.
At issue is the near-ubiquitous practice of brands subcontracting work to suppliers that in turn contract to others, amid ever-tighter margins and scant oversight of labour conditions, ending up with firms who employ Chinese workers in exploitative conditions.
Several brands including Loro Piana have been temporarily place under administration due to concerns about labour conditions at suppliers.
The restrictions were lifted after the firms agreed to manage their supply chains more strictly.
Italy’s government has come to the defence of luxury brands, with Industry Minister Adolfo Urso saying last year the reputation of Italian brands was “under attack”.
