MILAN — 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 said, confirming information published by business daily Il Sole 24 Ore.
None of the nine companies is under investigation, and prosecutors have not sought court-appointed administration for any of them, according to a judicial document reviewed by Reuters.
Cucinelli said in a statement it was surprised and deeply saddened that part of the materials intended for its packaging were found at an unsuitable workplace, despite supplier checks and fair pricing, and pledged full cooperation to protect workers and the wider "Made in Italy" brand.
The other firms did not immediately respond to requests for comment.
The wide-ranging investigation by the Milan prosecutor's office uncovered numerous instances of exploitative work conditions in the supply chains of some of Italy's leading fashion houses, 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 placed 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 that the reputation of Italian brands was "under attack".
According to a nine-page decree seen by Reuters, the additional brands were drawn into the probe after police found products and subcontracting documents linked to them during earlier searches of two workshops, accused of exploiting undocumented Chinese workers.
The two Chinese-owned workshops made garment bags, shopping bags and pouches for Brandart and F. VL., two companies also visited by the Carabinieri on Thursday, which supplied the items directly to the nine fashion brands that marketed them under their own labels.
