Valentino bags under fire: Italian court probes worker exploitation in luxury supply chain

Time of India

2 days ago

In a significant development that continues to expose troubling labour practices within Italy's luxury fashion sector, a Milan court has placed Valentino Bags Lab Srl, a unit of the renowned Italian fashion house Valentino, under judicial administration for one year.
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The decision follows an investigation that revealed serious cases of worker exploitation within the company's supply chain.
According to a 30-page court ruling obtained by Reuters, the judicial oversight was ordered after it was found that Valentino Bags Lab 'culpably failed' to monitor and regulate its suppliers adequately. The court stated that this failure was driven by the pursuit of higher profits at the expense of legal and ethical compliance.
The administration period could be lifted early if the company demonstrates substantial corrective action and aligns its practices with Italy's labour laws.
Valentino Bags Lab is responsible for the production of handbags and travel accessories bearing the Valentino brand name. Although Valentino could not immediately be reached for comment, the ruling places renewed scrutiny on the luxury fashion house, which partly came under French ownership last year.
In 2023, French fashion conglomerate Kering acquired a 30% stake in Valentino from Qatari investment fund Mayhoola, with an option to take full control of the brand by 2028.
This is the fourth such case handled by the same Milan court in less than two years, underscoring a pattern of supply chain malpractice within prestigious fashion labels operating in Italy. Previously, the court had placed other high-profile companies under judicial supervision for similar issues, including Dior's Italian division (owned by LVMH), Giorgio Armani, and the handbag brand Alviero Martini.
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Notably, all three companies managed to reform their practices swiftly, leading to early termination of their administration periods.
These legal interventions are part of a growing effort in Italy to confront labour exploitation in sectors closely tied to its global reputation, particularly luxury fashion. Judicial administrators appointed in such cases are tasked with helping companies restructure their supply chain operations to ensure compliance with ethical and legal standards.
As scrutiny intensifies on the back-end operations of luxury brands, this ruling serves as a clear warning: even the most prestigious names are not immune from accountability when it comes to protecting workers' rights.