MILAN — More fashion companies have come under scrutiny from Milan prosecutors looking into the country’s fashion supply chain practices.
According to media reports, 11 firms have been asked to hand over documents on governance and supply chain controls as part of investigations into alleged exploitative work conditions at some of their subcontractors.
The investigations seek to determine the extent of the companies’ involvement in the use of exploited labor and whether they were negligent in properly auditing their supply chain partners.
The names involved include Brunello Cucinelli; Bulgari; Chanel; Etro; Goyard Italie; Jacob Cohën; Moncler; Owenscorp Italia, behind the Rick Owens brand; Stefano Ricci, as well as packaging specialists Brandart and FVL.
The investigations resulted from searches at Moda Fashion Style Srl and Isacco Srl, conducted last May and June, respectively. Both companies — allegedly part of the fashion brands’ subcontracting networks — are reportedly specialized in packaging, producing garment bags and shoppers.
According to Milan prosecutors led by Paolo Storari, law enforcement uncovered “demeaning” working conditions, lack of safety protocols, worker exploitation and sweatshop schemes.
The fashion brands are under preliminary probes and prosecutors haven’t sought court-appointed administration for any of them.
Contacted by WWD on Friday, some of the involved fashion companies issued statements to clarify their position in the matter.
Chanel said it “is committed to fully cooperating with the Italian authorities” and that it “applies the highest standards of social and environmental responsibility throughout its supply chain. Its suppliers and subcontractors are subject to regular assessments, audits and controls.”
“The sites concerned had undergone extensive audits and were also subject to additional verification measures. The information reported in the media was already known to Chanel. Following an alert received on May 18, 2026, the house instructed its packaging supplier on May 20, 2026, to end its relationship with the subcontractor concerned, and the termination of the contract was initiated with immediate effect,” the statement read.
The Brunello Cucinelli company said that it was “surprised and deeply distressed to learn that, within the supply chain of one of our packaging suppliers, materials bearing our trademark were found at an unsuitable workplace.”
“These were products not intended for sale, which we purchase from a company based in the Veneto region. As with all suppliers of materials, we require the utmost attention to respect for labor dignity, and we conduct reputational due diligence and documentary compliance checks on such suppliers. To date, those reviews had not revealed any critical issues. We also believe that we have always paid a fair price for production in Italy in full compliance with applicable laws and under working conditions that were more than adequate,” the company said.
“We emphasize that this is a materials’ supplier, distinct from the network of 400 subcontracting manufacturers that employ approximately 9,000 people and to whom we entrust the highly artisanal production of our products, with whom we maintain a direct and strong relationship. Our fashion house has always chosen to carry out all production exclusively in Italy, consistently devoting the utmost attention to the quality of workplaces and the proper compensation of all workers, with the aim of ensuring both the economic and moral dignity of labor,” the statement concluded.
Jennifer Tommasi Bardelle, owner and creative director of Jacob Cohën, said the brand “will support with all possible means the Milan public prosecutor’s office in its investigation into the fashion industry’s supply chain. I want to speak personally on this, because I have always believed that the supply chain is the heart of everything we do and have strongly demanded that it be clean, transparent and fully compliant with the law.”
“This fundamental principle applies whether or not, as in this case, act-finding proceedings relate to third-party sub-suppliers that — with no relationship with us and unknown to us — have been apparently engaged in irregular labor practices in the production of packaging items for a number of luxury brands,” she said. “Jacob Cohën will pursue all responsible entities and individuals accordingly. We stand unequivocally on the side of all workers: their dignity comes before margin and EBITDA [earnings before interest, taxes, depreciation and amortization]. It always has been, and it always will be this for myself and our company,” Tommasi Bardelle said.
Etro, Goyard and Stefano Ricci had no comment on Friday, while the other brands involved did not return WWD’s requests for comment at press time.
This probe differs from previous cases, which uncovered ties of luxury brands such as Tod’s, Valentino, Loro Piana, Dior and Giorgio Armani, among others, to subcontractors allegedly involved in sweatshop schemes.
All the above brands were put under judicial administration to correct and enhance audits and oversight through court-mandated procedures, with the exception of Tod’s, which obtained that the judicial administration procedure be handled by an Ancona, Italy, court, which has yet to rule.
Dior’s, Giorgio Armani’s, Loro Piana’s and Valentino’s probes have since been fully resolved, and the judicial oversight lifted.
Meanwhile, in March, Paul & Shark and Aspesi were also investigated for alleged negligence in auditing their suppliers, with prosecutors requesting they be placed under judicial administration. However, a Milan judge ruled against the prosecutors’ move, arguing the legal grounds for the requested measure were not met.
Over the past two years these supply chain scandals have rocked the luxury fashion industry in Italy, shaking both its reputation and business practices. The investigations by the Milan court have raised concerns about the industry’s ability to manage its supply chains effectively.
The backlash has led brands and industry associations to pressure domestic policymakers to come to the rescue and define nationwide auditing standards and regulation protocols promoted by the Ministry of Enterprises and Made in Italy.
In particular, Camera Nazionale della Moda Italiana and Confindustria Moda have been among the strongest supporters of a shared, nationwide auditing system. Legislation had seemed to move swiftly through several contacts with Minister Adolfo Urso, which led to a draft proposal for a voluntary certification for fashion brands’ value chains, aimed at ensuring legality and traceability throughout the entire production process, across all tiers of subcontracting.
However, the bill — which had already passed a Senate Commission vote — was stalled by the Lower House Commission of the Italian Parliament. The move apparently resulted from backlash from trade unions, which have been among the strongest opponents of the measures, billing them as an attempt on the part of the fashion sector to seek “legal immunity from prosecution” should wrongdoing emerge across their supply chains.
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