Italian police search Chanel offices in luxury labour probe

Chanel flagship store covid-19 acquisition
FashionHuman ResourcesLuxury goodsNewsSupply Chain

Italian police allegedly recently searched Chanel’s offices as prosecutors widen an investigation into alleged worker exploitation in the luxury fashion supply chain.

The French fashion house is one of nine brands ordered to provide documents on corporate governance and supply chain controls.

Authorities also visited the offices of Moncler, Brunello Cucinelli, Bulgari, Jacob Cohen, Etro, Stefano Ricci, Goyard Italie and Owenscorp Italia.

None of the nine companies is under formal investigation and prosecutors are not seeking to place them under court-appointed administration.

Chanel says it is “fully co-operating” with the Italian authorities and has already moved to end its connection with the subcontractor at the centre of the inquiry.

The group says it received an alert about possible labour abuse on May 18. It instructed its packaging supplier to terminate the relationship two days later and says the process began immediately.

Chanel added that its suppliers and subcontractors face regular assessments, audits and controls, while the sites concerned have undergone further checks.

The operation has expanded after investigators found products and subcontracting documents connected to the brands during searches of two Chinese-owned workshops.

Police accused the workshops of exploiting undocumented Chinese workers while producing garment bags, shopping bags and pouches for two companies supplying the luxury houses.

The searches follow a similar operation in December involving 13 fashion companies including Gucci, Prada and Dolce & Gabbana.

Seven other fashion groups have faced court-appointed administration during Italy’s wider investigation into working practices in luxury supply chains. Courts later lifted those measures after the companies brought their controls into line with judicial requirements.

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Italian police search Chanel offices in luxury labour probe

Chanel flagship store covid-19 acquisition

Italian police allegedly recently searched Chanel’s offices as prosecutors widen an investigation into alleged worker exploitation in the luxury fashion supply chain.

The French fashion house is one of nine brands ordered to provide documents on corporate governance and supply chain controls.

Authorities also visited the offices of Moncler, Brunello Cucinelli, Bulgari, Jacob Cohen, Etro, Stefano Ricci, Goyard Italie and Owenscorp Italia.

None of the nine companies is under formal investigation and prosecutors are not seeking to place them under court-appointed administration.

Chanel says it is “fully co-operating” with the Italian authorities and has already moved to end its connection with the subcontractor at the centre of the inquiry.

The group says it received an alert about possible labour abuse on May 18. It instructed its packaging supplier to terminate the relationship two days later and says the process began immediately.

Chanel added that its suppliers and subcontractors face regular assessments, audits and controls, while the sites concerned have undergone further checks.

The operation has expanded after investigators found products and subcontracting documents connected to the brands during searches of two Chinese-owned workshops.

Police accused the workshops of exploiting undocumented Chinese workers while producing garment bags, shopping bags and pouches for two companies supplying the luxury houses.

The searches follow a similar operation in December involving 13 fashion companies including Gucci, Prada and Dolce & Gabbana.

Seven other fashion groups have faced court-appointed administration during Italy’s wider investigation into working practices in luxury supply chains. Courts later lifted those measures after the companies brought their controls into line with judicial requirements.

Click here to sign up to Retail Gazette‘s free daily email newsletter

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