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.



Pharrell Pursues Paris Landmark Takeovers with Louvre Show

Pharrell has been creative director at Louis Vuitton since 2023. Mark Sagliocco / GETTY IMAGES NORTH AMERICA/AFP
Pharrell has been creative director at Louis Vuitton since 2023. Mark Sagliocco / GETTY IMAGES NORTH AMERICA/AFP
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Pharrell Pursues Paris Landmark Takeovers with Louvre Show

Pharrell has been creative director at Louis Vuitton since 2023. Mark Sagliocco / GETTY IMAGES NORTH AMERICA/AFP
Pharrell has been creative director at Louis Vuitton since 2023. Mark Sagliocco / GETTY IMAGES NORTH AMERICA/AFP

Paris Men's Fashion Week kicks off Tuesday, headlined by Pharrell Williams' highly anticipated new show for Louis Vuitton which is set to take over the Louvre in the evening.
Transforming the French capital's most famous museum continues his tradition of using major landmarks as backdrops for his clothes since he began as creative director in 2023, AFP said.
For his debut show, the LVMH-owned brand used the Pont Neuf, the oldest bridge in the capital, as a giant runway, even painting its paving stones gold.
A historic theme park, the Jardin d'Acclimatation, hosted Pharrell's show last January while in June he sent models down a lawn catwalk built on the rooftop of the modernist headquarters of UN agency UNESCO.
The Louvre's iconic architecture has been used several times in the past by Vuitton's Nicolas Ghesquiere, artistic director of women's collections, most recently in October.
Pharrell's fifth collection for the Autumn-Winter 2025-2026 season is expected to once again draw a star-studded crowd from the worlds of rap, cinema, and sports.
Brand ambassadors include American basketball player LeBron James, French basketball sensation Victor Wembanyama, and Olympic swimming star Leon Marchand.
South Korean star J-Hope of K-pop group BTS, currently in Paris, shared his invitation on social media: a metallic card bearing his name in a leather pouch.
After delivering an ode to multiculturalism during his last show in June, Pharrell Williams might be tempted to send a political message a day after the inauguration of Donald Trump as US president, some observers believe.
'Workwear'
The opening day of Men's Fashion Week, which runs until Sunday, will also feature an afternoon show by Japanese brand Auralee, making its third Paris appearance.
Founded in 2015 by Ryota Iwai, the label stands out for its simple, functional design.
In terms of looks, experts say the aesthetic dominance of streetwear is fading, with designers increasingly focused on "casual tailoring", emphasizing suits and structured pieces with a relaxed twist.
A major trend from the spring-summer 2025 collections was dubbed "workwear", featuring trench coats, Barbour-style jackets, duffle coats and loafers.
"There’s a classic, slightly dandy but chic, elegant, and casual silhouette emerging," Alice Feillard, men’s buying director at luxury Paris emporium Galeries Lafayette, told AFP.
Brown colors have dominated for two seasons, and insiders expect them to remain a key shade at the end of the year.
A number of top labels are luring new designers or looking for fresh inspiration in the increasingly tough luxury market.
Lanvin is set to return after a two-year hiatus, presenting Peter Copping’s debut collection as the artistic director of France’s oldest couture house.
After completing his first show in September, Valentino’s new artistic director, Alessandro Michele, will return for haute couture week, which follows immediately after the menswear week.
One of the most anticipated shows will be on Sunday by in-vogue French designer Simon Porte Jacquemus, whose Jacquemus brand is making its return to the official calendar after a five-year absence.
Notably absences include Givenchy, whose new chief designer Sarah Burton has reserved her first collection for the women’s Fashion Week in March, as well as Loewe, whose artistic director Jonathan Anderson is rumored to be on the way out.
Hedi Slimane left his role as artistic director at Celine in October, John Galliano quit Maison Margiela in December, and Chanel unveiled their new creative director, Matthieu Blazy, only a month ago.