Trial of Chinese Crime Gangs in Italian Fashion Stalls amid Sabotage Fears

Italian Guardia di Finanza (Tax Police) carry out a search at a textile firm during an investigation, in the Tuscan city of Prato, Italy, in this handout photo obtained by Reuters. Guardia di Finanza Press Office/Handout via REUTERS
Italian Guardia di Finanza (Tax Police) carry out a search at a textile firm during an investigation, in the Tuscan city of Prato, Italy, in this handout photo obtained by Reuters. Guardia di Finanza Press Office/Handout via REUTERS
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Trial of Chinese Crime Gangs in Italian Fashion Stalls amid Sabotage Fears

Italian Guardia di Finanza (Tax Police) carry out a search at a textile firm during an investigation, in the Tuscan city of Prato, Italy, in this handout photo obtained by Reuters. Guardia di Finanza Press Office/Handout via REUTERS
Italian Guardia di Finanza (Tax Police) carry out a search at a textile firm during an investigation, in the Tuscan city of Prato, Italy, in this handout photo obtained by Reuters. Guardia di Finanza Press Office/Handout via REUTERS

A landmark trial in Italy of Chinese crime gangs has suffered so many mishaps - from the disappearance of documents to the resignation of interpreters - that a senior prosecutor suspects it's being sabotaged to protect the criminals' grip on Europe's fashion industry.

The case, launched after two Chinese men were hacked to death with machetes in 2010, is aimed at dismantling an illicit network accused of controlling the logistics of the continent's multi-billion-euro garments sector from the city of Prato in Tuscany.

Instead, it has become a cautionary tale about the obstacles Italy's justice system faces when confronting international organized crime without the tools it has used effectively to fight home-grown mafia groups, prosecutors say.

Reuters spoke to two of Italy's most senior anti-mafia investigators, and more than half a dozen textile workers, union representatives and defense lawyers, to gain a rare glimpse into the challenges of tackling alleged Chinese organized crime.

"The suspicion is that there is interference from the Chinese community and Chinese authorities in this matter," said Luca Tescaroli, a veteran of Italy's war against the mafia who is now Prato's chief prosecutor and leading the charge against Chinese crime gangs.

The Chinese embassy in Rome did not reply to emails requesting comment on Tescaroli's remarks. China's foreign, public security and justice ministries did not immediately reply to Reuters' requests for comment for this story.

When the latest court interpreter failed to show up to a hearing at the end of September, a quick check revealed she had returned to China and her transcripts were "incomprehensible and unusable", Tescaroli said.

The translator was the second to walk off the job and no other Chinese interpreter in Tuscany has agreed to take over. Tescaroli has opened an investigation into the possibility that someone is looking to sink the trial.

The violence prosecutors hoped to curb has only intensified as the trial flounders, with the battle for control of coat hanger production and fast-fashion freight spawning a string of bomb and arson attacks in Italy, France and Spain.

There have been at least 16 attacks, including cases of the destruction of property, since April 2024, according to a Reuters tally of official reports.

The Prato prosecutor and his colleagues are pressing the judges in the so-called China Truck trial to define the Chinese gangs legally as mafia groups – a designation that would unlock sweeping powers, asset seizures and stiffer sentence.

However, in Italy that label is difficult to secure, even more so if the organizations are rooted abroad, making them harder to penetrate than home-grown crime groups such as Sicily's Cosa Nostra.

Wedged in the hills northwest of Florence, Prato is billed as Europe's largest textile manufacturing hub, hosting more than 7,000 textile and garment companies that register some 2.3 billion euros ($2.68 billion) in official annual exports. Over 4,400 of firms are Chinese owned, local authorities say.

Almost a quarter of its residents are foreigners, the largest ratio in Italy, but the percentage is likely much higher as many newcomers are illegal immigrants without work permits.

Prato's streets are lined with Chinese-owned workshops, warehouses, and businesses that have transformed the city into a global fast-fashion production center, and a flashpoint for violence linked to criminal networks.

The China Truck investigation closed in 2018 with prosecutors alleging that the 58 suspects had formed "a criminal association equipped with very significant financial means ... with support and resources abroad".

Seven years on, not a single defendant or witness has been called to testify.

Meanwhile, the alleged mastermind Zhang Naizhong, described by investigators as a "boss of bosses", slipped back to China in 2018 after he was released from pre-trail custody and prosecutors doubt he will ever return to Italy.

His Italian lawyer Melissa Stefanacci declined to comment on any aspect of the case. Zhang and the other suspects have pleaded not guilty.

The case emerged from what Francesco Nannucci, then head of Prato's police Flying Squad, described to Reuters as a war between two rival gangs, one made up of Chinese originally from Zhejiang and the other of Chinese originally from Fujian, for control of territory in Europe.

Despite keen police interest and multiple investigations in Prato, the gang violence has escalated in the past two years.

In July 2024, a Chinese businessman based in Prato was stabbed multiple times by a group of six men, including a former soldier, who had flown in from China "to protect, through violence, the business interests of the monopolistic group in the coat-hanger sector," prosecutors said in a statement.

All six were arrested and sentenced to 7.5 years in jail for attempted murder.

In April of this year, Zhang Dayong, Zhang's alleged right-hand man who was also charged in the China Truck case, was shot dead in Rome alongside his girlfriend. No-one has been arrested for those killings.

Tescaroli said emerging companies often with the prefix "Xin" - meaning "new" in Chinese - were trying to undercut established players, selling hangers at about 6 cents each compared to the previous market rate of about 27 cents.

"Since the volumes are vast, a few cents of margin on each piece guarantee gigantic profits," he said.

Chinese businesses in the textile district have long operated within what investigators call the "Prato system", marked by corruption and irregular practices, including labor and safety abuses as well as tax and customs fraud. These companies can appear and disappear overnight, engaging in a cat-and-mouse game with authorities to dodge taxes and avoid having to give workers proper contracts, according to Arturo Gambassi, a representative from the Sudd Cobas union, which defends workers' rights in the textile sector.

"In all the firms where we have initiated labor disputes, we saw that their business name had changed in the previous two years," he told Reuters. Police say fabrics are often smuggled in from China to avoid customs duties, while profits are sent back through illicit money-transfer channels, with up to 4 million euros shipped out of Rome's Fiumicino airport each week, according to prosecutors and police.

To maintain their competitive edge, the industry depends on cheap, round-the-clock labor, largely from China and Pakistan, with workers facing a backlash if they seek legal contracts.

On November 17, more than 15 Chinese citizens assaulted a union demonstration in Prato. Plain clothes police who were observing the protest were also attacked, with two officers needing hospital treatment, a police statement said.

Italian prosecutors succeeded in dismantling major Italian mob networks, notably Cosa Nostra, in part thanks to legislation introduced specifically to tackle the mafia.

The official mafia designation carries stiffer sentences and lets courts infer membership from conduct, a key advantage when prosecutors must overcome silence and intimidation.

Tescaroli is trying to get the courts to brand the Chinese gangs as mafia groups, but Barbara Sargenti, Italy's national anti-mafia prosecutor, questioned whether this would happen.

To establish that there is a Chinese mafia, Italy needs to map these organizations either from inside sources or with help from judicial and police authorities in China.

Sargenti said cooperation with China was proving "very difficult" and, so far, only one Chinese citizen had turned state witness within Italy, in a drug-related case.

Sargenti said China's police and judicial authorities had been in touch with Italy's justice ministry in recent months, saying it was willing to send officers collaborate with the Italians but there had been no follow up.

"Investigations are, let's say, very complicated," she said. Without the mafia designation or Chinese cooperation, Tescaroli's case in the China Truck trial relies on the fragile scaffolding of Italian procedure, and the willingness of translators to show up.

After the Tuscan interpreters made themselves unavailable, two new translators were appointed on November 17 - Chinese citizens from the northern port city of Genoa, outside Tuscany.

But court officials aren't claiming victory, yet, with the new translators saying they could not guarantee they would understand the dialects captured in phone taps that form crucial evidence in the case. The next hearing is scheduled for May 15.



Armani 2025 Revenue Fell 2.8%, CEO Hasn't Met Potential Buyers

FILE - Actress Cate Blanchett, from left, designer Giorgio Armani, and actress Julia Roberts pose for photographers upon arrival at the British Fashion Awards in central London, Dec. 2, 2019. (Photo by Joel C Ryan/Invision/AP)
FILE - Actress Cate Blanchett, from left, designer Giorgio Armani, and actress Julia Roberts pose for photographers upon arrival at the British Fashion Awards in central London, Dec. 2, 2019. (Photo by Joel C Ryan/Invision/AP)
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Armani 2025 Revenue Fell 2.8%, CEO Hasn't Met Potential Buyers

FILE - Actress Cate Blanchett, from left, designer Giorgio Armani, and actress Julia Roberts pose for photographers upon arrival at the British Fashion Awards in central London, Dec. 2, 2019. (Photo by Joel C Ryan/Invision/AP)
FILE - Actress Cate Blanchett, from left, designer Giorgio Armani, and actress Julia Roberts pose for photographers upon arrival at the British Fashion Awards in central London, Dec. 2, 2019. (Photo by Joel C Ryan/Invision/AP)

Italian fashion group Armani said on Wednesday its revenue fell 2.8% at constant exchange rates last year, weighed by a weak performance of its wholesale channel.

In 2025, the company's revenue totaled 2.2 billion euros ($2.57 billion), while total turnover, including direct licensee sales, was 4 billion euros.

"We face a possible structural change in the approach to luxury and fashion ⁠by current consumers ⁠and potential, which must be taken into account," Reuters quoted Armani group CEO Giuseppe Marsocci as saying in a statement.

Earnings before interest, taxes, depreciation and amortization (EBITDA) rose 3.2% year-on-year to 152.7 million euros, while operating ⁠profit increased 2% to 52.6 million euros.

Trends in the first months of 2026 were in line with the previous year, with unfavorable currency movements weighing on performance.

Giorgio Armani, the group's founder who died last September, instructed his heirs to sell an initial stake in the company to players such as L'Oreal, EssilorLuxottica and French ⁠luxury ⁠giant LVMH.

In an interview with Italy's Sole 24 Ore published on Wednesday, Marsocci said there was no update on the group's shareholding structure, adding that interest in the Armani group remained strong.

"We have not started meetings with the three potential buyers, and there are no tensions among the family members," Marsocci said in a separate interview with WWD magazine.


Ferragamo Expands Leather Mapping Efforts as EU Sustainability Rules Take Shape

James Ferragamo, a chief product officer for the Salvatore Ferragamo group, talks with journalists during an interview with the Associated Press, in Milan, Italy, Wednesday, April 22, 2026. (AP Photo/Antonio Calanni)
James Ferragamo, a chief product officer for the Salvatore Ferragamo group, talks with journalists during an interview with the Associated Press, in Milan, Italy, Wednesday, April 22, 2026. (AP Photo/Antonio Calanni)
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Ferragamo Expands Leather Mapping Efforts as EU Sustainability Rules Take Shape

James Ferragamo, a chief product officer for the Salvatore Ferragamo group, talks with journalists during an interview with the Associated Press, in Milan, Italy, Wednesday, April 22, 2026. (AP Photo/Antonio Calanni)
James Ferragamo, a chief product officer for the Salvatore Ferragamo group, talks with journalists during an interview with the Associated Press, in Milan, Italy, Wednesday, April 22, 2026. (AP Photo/Antonio Calanni)

Italian luxury brand Ferragamo said it can map the country of origin for much of the leather used to make its coveted footwear and handbags, a first step in traceability according to experts.

The announcement comes during a wave of European Union sustainability rules that are increasing pressure on fashion brands to account for materials in their supply chains.

The family-run and publicly traded fashion house has been issuing sustainability reports for over a decade, but the 2025 report released March 31 is the first that contains figures on material traceability — notably for leather, which experts say is harder to trace than textile fibers such as cotton.

“We have been using leather in a more sustainable way,’’ James Ferragamo, the brand’s chief product officer and grandson of founder Salvatore Ferragamo, told The Associated Press in an interview last week. “I think it is one of the more sustainable materials in my point of view.”

Most of the tanneries working with the brand “control their water, have fair treatment of the workforce, monitor their supply chain ensuring that they’re buying leather from those who are not deforesting, and taking the right approach also in terms of breeding and animal welfare,” he said.

Traceability in fashion sustainability Traceability of materials is considered a first and necessary step for the fashion industry, which is facing a new EU framework that will require brands and their suppliers to ensure the items they produce are sustainable from the drawing board to end-of-life disposal. Precise terms are still being defined and compliance will be phased in over the coming years.

“Traceability is an essential factor, but it’s not sufficient,’’ said Francesca Romana Rinaldi, a sustainability expert and director of the Monitor for Circular Fashion at SDA Bocconi School of Management. “It enables the implementation of sustainability and circularity.”

She said that any company that is not tracing their materials “doesn’t know their supply chain” and “could be also criticized for greenwashing.”

EU regulations and directives are moving toward full circularity of materials to include measures extending the life cycle of garments, accessories and footwear through repairs and end-of-life management, including recycling and upcycling, she said.

The EU is also phasing in restrictions on destroying unsold apparel, accessories and footwear produced by companies with more than 250 employees and more than 40 million euros ($46.8 million) in annual revenues.

From breeding to assembly The family-run fashion house was founded in 1927 by Salvatore Ferragamo in Florence, after his return from Hollywood, where he had established himself as shoemaker to the stars with clients including Marilyn Monroe and Judy Garland. Material scarcity during World War II pushed Ferragamo to experiment with alternatives, substituting wicker for leather and using cork for soles, the younger Ferragamo said.

In keeping with its origins, Ferragamo remains primarily a footwear and leather goods maker. Together, they comprised 86% of 2025 sales of 976.5 million euros ($1.1 billion).

Ferragamo launched its initiative on leather traceability with the calf leather used for its Fiamma bag, tracing it from breeding to assembly, the group announced in its 2024 annual report.

In 2025, Ferragamo enlisted tanneries supplying 80% of the hides it buys in a project to identify the country of origin of raw materials through supplier declarations. When including textiles such as cotton, silk and nylon, the company says 81% of its materials are certified under third-party sustainability standards.

“Today there is not one single solution, one single technological solution to trace the leather to the birth farm of the cows,’’ said Davide Triacca, Ferragamo’s sustainability director. “We got to that result through a very dedicated and consistent approach and today we are able to trace more than 80% of the entire leather that we supply and the vast majority of which comes from Europe.”

The EU does not require leather to be traceable. Sustainability experts underscore that approaches based on country-level mapping and supplier declarations do not establish a full chain of custody and instead reflect an early stage of traceability.

Ferragamo previously included a capsule collection with silky textiles made from orange fibers in 2017, one of its first research investments. More recently it used nylon from castor oil instead of fossil oil for a men’s tote bag, and its Back to Earth collection featured the brand’s trademark Hug handbag treated with vegetable dyes.

“Research keeps on going. It’s something that we’re doing all the time,'' Ferragamo said.

“We’re trying to find different ways of creating different materials. And sometimes the materials that we produce are not ready for market. But it doesn’t mean that we don’t experiment.”


Adidas Shares Pop After Beating Nike to Sub-Two-Hour Marathon Milestone

Athletics - London Marathon - London, Britain - April 26, 2026 Kenya's Sabastian Sawe celebrates with an Adidas Adizero Adios Pro Evo 3 shoe after winning the men's elite race and setting a new world record with a time of 01:59:30 (Reuters)
Athletics - London Marathon - London, Britain - April 26, 2026 Kenya's Sabastian Sawe celebrates with an Adidas Adizero Adios Pro Evo 3 shoe after winning the men's elite race and setting a new world record with a time of 01:59:30 (Reuters)
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Adidas Shares Pop After Beating Nike to Sub-Two-Hour Marathon Milestone

Athletics - London Marathon - London, Britain - April 26, 2026 Kenya's Sabastian Sawe celebrates with an Adidas Adizero Adios Pro Evo 3 shoe after winning the men's elite race and setting a new world record with a time of 01:59:30 (Reuters)
Athletics - London Marathon - London, Britain - April 26, 2026 Kenya's Sabastian Sawe celebrates with an Adidas Adizero Adios Pro Evo 3 shoe after winning the men's elite race and setting a new world record with a time of 01:59:30 (Reuters)

German sportswear maker Adidas' shares rose on Monday after Kenya's Sabastian Sawe became the first person to run a marathon in under two hours in an official race, accomplishing his feat wearing the brand's Adizero Adios Pro Evo 3 trainers. 

Sawe shattered one of athletics' most elusive barriers on Sunday as he stormed to victory at the London Marathon in one hour 59 minutes and 30 seconds. The sub-two-hour marathon has been one of sport's biggest goals for years. 

After the race, Sawe held up his $500 Adizero Adios Pro Evo 3 trainer with "WR" and "sub-2" written on it in black marker pen. He ‌beat the previous ‌world record of 2:00:35 set at the Chicago ‌Marathon ⁠in October 2023 ⁠by the late Kelvin Kiptum. 

The win is a boost for Adidas against arch-rival Nike , after years of lab-backed experiments and near-misses looking to build a so-called "supershoe" to break the record. 

Nike's Breaking2 attempt at Monza in 2017 just fell short though Kenyan great Eliud Kipchoge ran under two hours in INEOS's 1:59 Challenge two years later. Yet those efforts fell outside the sport's official ⁠record books. 

Ethiopia's Yomif Kejelcha finished second in his marathon ‌debut and Tigst Assefa broke her own ‌women-only world record. All three were wearing Adidas' Adizero Adios Pro Evo 3 ‌trainers, which are set to go on sale on Thursday. 

Using innovative foam ‌and carbon-plated soles, and ultra-light components, the Adizero Adios Pro Evo 3 weighs an average 97 grams, 30% less than its predecessor, and improves running economy by 1.6%, Adidas said. 

"The Adidas family is incredibly proud of Sabastian and Tigist's historic ‌achievements," Patrick Nava, general manager at Adidas Running, said in a statement. 

"This is a testament to the years ⁠of hard work ⁠and dedication the have made, alongside our innovation team". 

Adidas shares were up 2% in mid-morning although they are down 18% since the start of this year on concerns about the group's exposure to US tariffs and the impact of the conflict in the Middle East. 

Adidas released its Adizero Adios Pro Evo 1 trainers in late 2023, after Assefa set a new women's marathon world record while wearing them at the women's Berlin Marathon. 

The third iteration of the shoe will be released for $500 a pair exclusively via the Adidas app, with a wider release in the autumn marathon season, according to the company's website, but the steep price tag puts them out of reach of most runners.