Latest news with #Chinese-operated
Fashion Network
16-05-2025
- Business
- Fashion Network
Valentino Bags Lab faces judicial oversight amid labor violations probe
A Milan court has placed Valentino Bags Lab Srl—maker of handbags and travel accessories for Italian fashion house Valentino SpA—under judicial administration, following allegations that the company failed to monitor its suppliers. These suppliers reportedly subcontracted production to Chinese-owned workshops accused of exploiting workers and violating Italian labor laws. The court imposed a one-year judicial oversight period but confirmed it would end sooner if Valentino Bags Lab aligns its operations with legal standards. Authorities have not filed any criminal charges against the company. In its ruling, the court stated that the company 'culpably failed' to oversee its subcontractors in pursuit of higher profit margins. Investigators found that Valentino Bags Lab did not assess the actual production capacity of its suppliers or verify working conditions. The Carabinieri's labor protection unit conducted the investigation, with public prosecutor Paolo Storari coordinating the effort. Between March and December 2024, law enforcement officers inspected seven Chinese-run workshops near Milan—including one previously linked to a Dior case. They found 67 workers across these sites, including nine unregistered individuals and three undocumented immigrants. The ruling stated that workshop operators forced workers to sleep on-site and kept them available for round-the-clock production, including public holidays. Power usage data showed continuous day-night cycles, and operators had allegedly removed safety devices from machinery to boost output. Since 2018, one of the suppliers, Bags Milano Srl, has worked exclusively for Valentino Bags Lab, producing about 4,000 bags per month at costs ranging from €35 to €75 ($39.20–$84). Two judicial sources reported that retailers later sold the same items for €1,900 to €2,200. Bags Milano's owner allegedly outsourced additional work to other Chinese-operated workshops. Authorities are now investigating the owners of both the primary and secondary firms for labor exploitation and illegal employment practices. The court noted that Valentino Bags Lab 'continued working with suppliers who exploit workers and breach safety standards,' even after similar practices received media coverage involving other major fashion houses. This case marks the fourth time Milan's judiciary has targeted a fashion company since December 2023. Officials previously took action against the Italian operations of Dior (LVMH), Armani, and Alviero Martini SpA. In those instances, the court lifted judicial supervision before the companies implemented corrective measures. In 2023, French luxury conglomerate Kering acquired a 30% stake in Valentino from Qatari investment fund Mayhoola, with an option to acquire full ownership by 2028. The Milan court is now calling for broader reforms, urging luxury brands to enhance supply chain oversight and ensure compliance with labor laws. According to consultancy Bain & Company, Italy accounts for 50% to 55% of global luxury goods production, which is driven by networks of small, subcontracted manufacturers.
Fashion Network
15-05-2025
- Business
- Fashion Network
Valentino Bags Lab faces judicial oversight amid labor violations probe
Between March and December 2024, law enforcement officers inspected seven Chinese-run workshops near Milan—including one previously linked to a Dior case. They found 67 workers across these sites, including nine unregistered individuals and three undocumented immigrants. The ruling stated that workshop operators forced workers to sleep on-site and kept them available for round-the-clock production, including public holidays. Power usage data showed continuous day-night cycles, and operators had allegedly removed safety devices from machinery to boost output. Since 2018, one of the suppliers, Bags Milano Srl, has worked exclusively for Valentino Bags Lab, producing about 4,000 bags per month at costs ranging from €35 to €75 ($39.20–$84). Two judicial sources reported that retailers later sold the same items for €1,900 to €2,200. Bags Milano's owner allegedly outsourced additional work to other Chinese-operated workshops. Authorities are now investigating the owners of both the primary and secondary firms for labor exploitation and illegal employment practices. The court noted that Valentino Bags Lab 'continued working with suppliers who exploit workers and breach safety standards,' even after similar practices received media coverage involving other major fashion houses. This case marks the fourth time Milan's judiciary has targeted a fashion company since December 2023. Officials previously took action against the Italian operations of Dior (LVMH), Armani, and Alviero Martini SpA. In those instances, the court lifted judicial supervision before the companies implemented corrective measures. In 2023, French luxury conglomerate Kering acquired a 30% stake in Valentino from Qatari investment fund Mayhoola, with an option to acquire full ownership by 2028. The Milan court is now calling for broader reforms, urging luxury brands to enhance supply chain oversight and ensure compliance with labor laws. According to consultancy Bain & Company, Italy accounts for 50% to 55% of global luxury goods production, which is driven by networks of small, subcontracted manufacturers.
Fashion Network
15-05-2025
- Business
- Fashion Network
Valentino Bags Lab faces judicial oversight amid labor violations probe
A Milan court has placed Valentino Bags Lab Srl—maker of handbags and travel accessories for Italian fashion house Valentino SpA—under judicial administration, following allegations that the company failed to monitor its suppliers. These suppliers reportedly subcontracted production to Chinese-owned workshops accused of exploiting workers and violating Italian labor laws. The court imposed a one-year judicial oversight period but confirmed it would end sooner if Valentino Bags Lab aligns its operations with legal standards. Authorities have not filed any criminal charges against the company. In its ruling, the court stated that the company 'culpably failed' to oversee its subcontractors in pursuit of higher profit margins. Investigators found that Valentino Bags Lab did not assess the actual production capacity of its suppliers or verify working conditions. The Carabinieri's labor protection unit conducted the investigation, with public prosecutor Paolo Storari coordinating the effort. Between March and December 2024, law enforcement officers inspected seven Chinese-run workshops near Milan—including one previously linked to a Dior case. They found 67 workers across these sites, including nine unregistered individuals and three undocumented immigrants. The ruling stated that workshop operators forced workers to sleep on-site and kept them available for round-the-clock production, including public holidays. Power usage data showed continuous day-night cycles, and operators had allegedly removed safety devices from machinery to boost output. Since 2018, one of the suppliers, Bags Milano Srl, has worked exclusively for Valentino Bags Lab, producing about 4,000 bags per month at costs ranging from €35 to €75 ($39.20–$84). Two judicial sources reported that retailers later sold the same items for €1,900 to €2,200. Bags Milano's owner allegedly outsourced additional work to other Chinese-operated workshops. Authorities are now investigating the owners of both the primary and secondary firms for labor exploitation and illegal employment practices. The court noted that Valentino Bags Lab 'continued working with suppliers who exploit workers and breach safety standards,' even after similar practices received media coverage involving other major fashion houses. This case marks the fourth time Milan's judiciary has targeted a fashion company since December 2023. Officials previously took action against the Italian operations of Dior (LVMH), Armani, and Alviero Martini SpA. In those instances, the court lifted judicial supervision before the companies implemented corrective measures. In 2023, French luxury conglomerate Kering acquired a 30% stake in Valentino from Qatari investment fund Mayhoola, with an option to acquire full ownership by 2028. The Milan court is now calling for broader reforms, urging luxury brands to enhance supply chain oversight and ensure compliance with labor laws. According to consultancy Bain & Company, Italy accounts for 50% to 55% of global luxury goods production, which is driven by networks of small, subcontracted manufacturers.
Fashion Network
15-05-2025
- Business
- Fashion Network
Valentino Bags Lab faces judicial oversight amid labour violations probe
Between March and December 2024, law enforcement officers inspected seven Chinese-run workshops near Milan—including one previously linked to a Dior case. They found 67 workers across these sites, including nine unregistered individuals and three undocumented immigrants. The ruling stated that workshop operators forced workers to sleep on-site and kept them available for round-the-clock production, including public holidays. Power usage data showed continuous day-night cycles, and operators had allegedly removed safety devices from machinery to boost output. Since 2018, one of the suppliers, Bags Milano Srl, has worked exclusively for Valentino Bags Lab, producing about 4,000 bags per month at costs ranging from €35 to €75 ($39.20–$84). Two judicial sources reported that retailers later sold the same items for €1,900 to €2,200. Bags Milano's owner allegedly outsourced additional work to other Chinese-operated workshops. Authorities are now investigating the owners of both the primary and secondary firms for labour exploitation and illegal employment practices. The court noted that Valentino Bags Lab 'continued working with suppliers who exploit workers and breach safety standards,' even after similar practices received media coverage involving other major fashion houses. This case marks the fourth time Milan's judiciary has targeted a fashion company since December 2023. Officials previously took action against the Italian operations of Dior (LVMH), Armani, and Alviero Martini SpA. In those instances, the court lifted judicial supervision before the companies implemented corrective measures. In 2023, French luxury conglomerate Kering acquired a 30% stake in Valentino from Qatari investment fund Mayhoola, with an option to acquire full ownership by 2028. The Milan court is now calling for broader reforms, urging luxury brands to enhance supply chain oversight and ensure compliance with labour laws. According to consultancy Bain & Company, Italy accounts for 50% to 55% of global luxury goods production, which is driven by networks of small, subcontracted manufacturers.
Fashion Network
15-05-2025
- Business
- Fashion Network
Valentino Bags Lab faces judicial oversight amid labor violations probe
Between March and December 2024, law enforcement officers inspected seven Chinese-run workshops near Milan—including one previously linked to a Dior case. They found 67 workers across these sites, including nine unregistered individuals and three undocumented immigrants. The ruling stated that workshop operators forced workers to sleep on-site and kept them available for round-the-clock production, including public holidays. Power usage data showed continuous day-night cycles, and operators had allegedly removed safety devices from machinery to boost output. Since 2018, one of the suppliers, Bags Milano Srl, has worked exclusively for Valentino Bags Lab, producing about 4,000 bags per month at costs ranging from €35 to €75 ($39.20–$84). Two judicial sources reported that retailers later sold the same items for €1,900 to €2,200. Bags Milano's owner allegedly outsourced additional work to other Chinese-operated workshops. Authorities are now investigating the owners of both the primary and secondary firms for labor exploitation and illegal employment practices. The court noted that Valentino Bags Lab 'continued working with suppliers who exploit workers and breach safety standards,' even after similar practices received media coverage involving other major fashion houses. This case marks the fourth time Milan's judiciary has targeted a fashion company since December 2023. Officials previously took action against the Italian operations of Dior (LVMH), Armani, and Alviero Martini SpA. In those instances, the court lifted judicial supervision before the companies implemented corrective measures. In 2023, French luxury conglomerate Kering acquired a 30% stake in Valentino from Qatari investment fund Mayhoola, with an option to acquire full ownership by 2028. The Milan court is now calling for broader reforms, urging luxury brands to enhance supply chain oversight and ensure compliance with labor laws. According to consultancy Bain & Company, Italy accounts for 50% to 55% of global luxury goods production, which is driven by networks of small, subcontracted manufacturers.
