Italian police raid luxury brands Bulgari, Chanel

A woman walks past the entrance of a Bulgari store in Shanghai on June 29, 2023 (AFP / Pedro Pardo)

MILAN, Italy — Italian police raided the offices of several luxury brands including Bulgari and Chanel over suspicions they used sub-contractors 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 labor conditions, ending up with firms who employ Chinese workers in exploitative conditions.

Several brands including Loro Piana have been temporarily placed under administration due to concerns about labor 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 defense of luxury brands, with Industry Minister Adolfo Urso saying last year the reputation of Italian brands was “under attack.” — Agence France-Presse