Latest news with #PaoloStorari
Fashion United
14-07-2025
- Business
- Fashion United
Milan court orders judicial administration for Loro Piana
Another case of labour exploitation involving a luxury brand has emerged. This time it concerns LVMH-owned brand, Loro Piana. A Milan Court has ordered judicial administration for one year for Loro Piana. Frédéric Arnault has been the CEO of the company since June 10. According to Italian news agency Ansa, the measure taken by the judges of the prevention measures section concerns an investigation by prosecutor Paolo Storari. He ascertained that Loro Piana had outsourced the production of garments, including jackets, which were allegedly manufactured under "labour exploitation". FashionUnited contacted Loro Piana for comment, but no statement has been released at this time. The company recently obtained a legal victory in the fight against counterfeiting. Returning to the labour exploitation case, Loro Piana is another high fashion brand on which Storari has shone a light. He obtained the judicial administration regime from the judges. According to investigations by the Milan Labour Protection Group, the company allegedly failed to prevent and contain labour exploitation within the production cycle, as well as implement appropriate measures to verify the actual working conditions. It is believed to have further failed to monitor the technical capabilities of the contracting companies. In this way, Ansa reports, it culpably facilitated labour exploitation. According to the investigation, the fashion house entrusted the production of garments to an external company, Evergreen. The latter, not having been able to produce the requested garments, allegedly subcontracted the work to Sor-Man snc of Nova Milanese. This company also lacked adequate production capacity. According to the Prosecutor's Office's reconstruction, the company turned, also to reduce costs, to Chinese factories. These were closed by the military and one of the owners was arrested in May. The ruling states they used "irregular and clandestine labour, in unhealthy and dangerous working environments". Workers were housed "in abusive dormitories in order to draw mere manpower at any time of day or night and subjecting them to work shifts (...) far exceeding those contractually foreseen". This system allegedly allowed for profit maximisation. It induced the Chinese factory that actually produced the goods to cut labour costs (contributions, insurance and direct taxes). It did this by resorting to "undeclared" and clandestine labour. It also failed to comply with health and safety regulations in the workplace and did not respect the National Collective Labour Agreements for the sector regarding workers' wages, working hours, breaks and holidays. According to Ansa, the court found this "mechanism was culpably fuelled by Loro Piana spa. It did not verify the real entrepreneurial capacity of the contracting and subcontracting companies (Sor-Man), to whom it entrusted production. Over the years, it did not carry out effective inspections or audits to ascertain in practice the operation of the production chain and the actual working conditions and work environments." This article was translated to English using an AI tool. FashionUnited uses AI language tools to speed up translating (news) articles and proofread the translations to improve the end result. This saves our human journalists time they can spend doing research and writing original articles. Articles translated with the help of AI are checked and edited by a human desk editor prior to going online. If you have questions or comments about this process email us at info@
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
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.
