Italian Prosecutors Probe Supply Chain of Around a Dozen Fashion Brands

This photograph shows Milan's skyline with the Unicredit Tower (CL) next to "Bosco Verticale" (Vertical Forest) residential tower (C), Unipol Tower (2R) at Porta Nuova district,  Milan, on June 6, 2024. (Photo by GABRIEL BOUYS / AFP)
This photograph shows Milan's skyline with the Unicredit Tower (CL) next to "Bosco Verticale" (Vertical Forest) residential tower (C), Unipol Tower (2R) at Porta Nuova district, Milan, on June 6, 2024. (Photo by GABRIEL BOUYS / AFP)
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Italian Prosecutors Probe Supply Chain of Around a Dozen Fashion Brands

This photograph shows Milan's skyline with the Unicredit Tower (CL) next to "Bosco Verticale" (Vertical Forest) residential tower (C), Unipol Tower (2R) at Porta Nuova district,  Milan, on June 6, 2024. (Photo by GABRIEL BOUYS / AFP)
This photograph shows Milan's skyline with the Unicredit Tower (CL) next to "Bosco Verticale" (Vertical Forest) residential tower (C), Unipol Tower (2R) at Porta Nuova district, Milan, on June 6, 2024. (Photo by GABRIEL BOUYS / AFP)

Prosecutors in Milan are investigating the supply chain of around a dozen more fashion brands, a person with knowledge of the matter said, after a unit of France's LVMH in Italy was placed under court administration in a worker exploitation probe.
On Monday, a Milan court appointed a commissioner to run an LVMH-owned maker of Dior-branded handbags after an investigation into four of its suppliers based in the surroundings of Italy's fashion capital uncovered illegal working conditions for staff.
On-site inspections and checks on electricity usage data led prosecutors to allege workers were employed for extended hours, working often into the night and during holidays. Some of the staff slept where they worked, had no regular contracts, with two having illegally immigrated into Italy.
This is the third such decision this year by the Milan court in charge of pre-emptive measures, which in April took similar steps in relation to a company owned by Giorgio Armani due to accusations the fashion group was "culpably failing" to properly oversee its suppliers. Armani Group said at the time it had always sought to "minimize abuses in the supply chain".
LVMH on Monday declined to comment on the court's decision.
Milan prosecutors and Italian police are investigating further small manufacturers that supply around a dozen other brands, the person told Reuters, declining to provide additional details because the information is confidential.
The appointment of a special commissioner is intended to give the fashion brands' subsidiaries time to fix problems in their supply chain while continuing to operate.
Neither LVMH nor Armani are under investigation, while the suppliers targeted by the probe face accusations of worker exploitation, copies of the court decisions seen by Reuters showed.
'MADE IN ITALY'
Milan prosecutors have been investigating for the past decade recruitment firms that allegedly illegally employed workers, evading taxes, as well as welfare and pension contributions, to slash the cost of the services they supplied.
The probes traditionally targeted sectors such as logistics, transportation and cleaning services, where workers were supplied by firms that sprung up and were wound down every couple of years.
The focus then shifted onto the fashion sector, where probes have highlighted similar problems this year.
Italy accounts for 50% to 55% of the global luxury goods production, consultancy Bain calculated, with thousands of small manufacturers supplying big brands and allowing them to sport the prized 'Made in Italy' label on their goods.
The latest Milan investigation has shown a small manufacturer was able to charge Dior as little as 53 euros ($57) to make a handbag, which the fashion house then sold in shops at 2,600 euros.
Under Italian law, brands outsourcing production are responsible for carrying out adequate checks on suppliers.
In the past, the measures taken by Italian magistrates in relation to worker exploitation probes concerned only the suppliers who mistreated workers.
However, Milan prosecutors have been able to make use of a provision in the law that was originally designed to deal with companies infiltrated by the Mob.
These companies would be placed under court, or judicial, administration through the appointment of special commissioners to run them.



Chanel Goes to the Opera in a Gleaming but Designer-Less Couture Collection

 A model presents a creation by the creative studio of fashion house Chanel as part of their Haute Couture Fall/Winter 2024-2025 collection show in Paris, France, June 25, 2024. (Reuters)
A model presents a creation by the creative studio of fashion house Chanel as part of their Haute Couture Fall/Winter 2024-2025 collection show in Paris, France, June 25, 2024. (Reuters)
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Chanel Goes to the Opera in a Gleaming but Designer-Less Couture Collection

 A model presents a creation by the creative studio of fashion house Chanel as part of their Haute Couture Fall/Winter 2024-2025 collection show in Paris, France, June 25, 2024. (Reuters)
A model presents a creation by the creative studio of fashion house Chanel as part of their Haute Couture Fall/Winter 2024-2025 collection show in Paris, France, June 25, 2024. (Reuters)

The show must go on, with aplomb. Chanel’s latest couture display Tuesday was a finely executed collection channeling theatricality.

Few Parisian fashion houses can fill the Paris Opera and gain applause from Vogue editor-in-chief Anna Wintour and other luminaries without even having a designer. It's a testament to Chanel’s enduring power and its world-renowned atelier following Virginie Viard's abrupt exit on June 5.

Here are some highlights of the fall couture displays:

Chanel's opulence

Guests clutching Chanel opera glasses got happily lost as they explored marble staircases to find a stage in the Opera’s outer corridors, filled with red velvet opera boxes designed by French movie director Christophe Honoré. The stage was set with silhouettes evoking the opera and its heyday: dramatic capes, puffed sleeves and richly embroidered pieces.

The designs’ gleam rivaled only that of the sumptuous 19th-century atrium itself, with shimmering buttons and brilliant threads reflecting the light.

There were moments of drama, with guests reaching for their cameras to capture a black gown with puff sleeves whose feathers, beading and ribbons gleamed provocatively.

This season, there is a welcome move to less accessorizing, a departure from the hallmark of Viard. The focus was on the garments, highlighting the craftsmanship and luxurious materials. Feathers, tassels, embroidered flowers, precious braids, lacquered jersey, supple tweeds, silky velvet, illusion tulle, taffeta and duchesse satin adorned looks befitting the venue.

Although the necklines were a standout feature, the collection as a whole had a slightly disparate feel that sometimes seemed to lack a singular aesthetic anchor.

Chanel paid tribute to the ateliers of the "petites mains," or the dozens of artisans who work in six ateliers a stone’s throw from the venue.

Without Viard

Viard abruptly left after over 30 years with the brand. The overnight announcement of her departure was highly unorthodox, coming just weeks before the couture show.

Viard succeeded Karl Lagerfeld upon his death in 2019 and was his closest collaborator for almost 30 years. She had overseen record sales for Chanel, reaching a reported $19.7 billion last year. Ready-to-wear sales reportedly increased 23% during her tenure.

Yet in the fickle world of fashion, strong sales are not always enough. Viard’s tenure was dogged by controversy, most recently with criticism of her collections, including a poorly received mid-season show in Marseille. Viard faced backlash for runway shows that critics said lacked the grandiose flair defining Lagerfeld’s era, and she often received critiques for underwhelming design choices.

Though her appointment was initially seen as temporary, she was only the third creative director in Chanel’s over 100-year history after Lagerfeld and, of course, legendary founder Gabrielle "Coco" Chanel.

The fashion world speculates on her successor. Names like Hedi Slimane, Marine Serre and Simon Porte Jacquemus circulate, suggesting potential shifts in Chanel’s creative direction.

Mabille’s toast to glamour

Bubbles are never far away from the effervescent couturier Alexis Mabille.

Unfurling, undressing, and plays on corsetry were on the menu this season, starting with an opening number featuring a gleaming bustier that resembled an opening flower. The intimacy and ritual of getting dressed is a theme that pervades Mabille's work.

Varied looks sometimes surprised guests, such as a Bob Mackie-style feathered headdress that out-Cher-ed Cher. The extravagant piece had an almost equestrian flourish and was a real feat of couture execution, showcasing Mabille’s flair for Hollywood-inspired glamour.

A golden bullet creation, and a gleaming metallic power cape with an armor-like bustier, gave the collection a lot of attitude, if not always coherence. Mabille’s collections often embrace a wide array of silhouettes and themes, sometimes leading to a lack of unified narrative. However, the diversity is also part of his charm.