Latest news with #ValentinoBagsLabSrl
NDTV
3 days ago
- Business
- NDTV
Luxury Brand Valentino Under Italian Court Scanner Over Worker Exploitation
There have been developments that have brought to light concerning labour practices being undertaken at Valentino Bags Lab Srl, which is a branch of the luxury Italian fashion house Valentino. The concern has been under judicial administration for one year followed by an investigation that revealed cases of work force exploitation in their supply chain. A Milan court has found the company failed to monitor suppliers and was driven by profit motives. View this post on Instagram A post shared by Valentino (@maisonvalentino) As per a 30-page court ruling obtained by Reuters, the judicial oversight was ordered after it was unearthed that Valentino Bags Lab failed to monitor and regulate its suppliers. According to the court, this failure was caused due to the pursuit of higher profits which came at the expense of legal and ethical compliances. The resultant administrative period could be lifted before time if the company demonstrates corrective action and aligns practices with the Italian labour laws. This is not the first time such scrutiny has befallen a luxury design house in the recent history. In fact, it is the fourth such case that has been handled by the Milan court in less than two years' time; that details a pattern of supply chain exploitation within luxury fashion labels operating out of Italy. Other brands that have previously been placed under the radar of the court are Dior's Italian division owned by Louis Vuitton Moet Hennessey, Giorgio Armani and Alveiro Martini. All of which managed to settle the practices and get early termination of their administration periods. These legal interventions come as a growing effort in Italy to counter labour exploitation in the luxury fashion industry. As the scrutiny intensifies on luxury labels' backend operations, it serves as a warning stating that even the most prestigious brands are not immune to having accountability on the protection of workers' rights.
Time of India
3 days ago
- Business
- Time of India
Valentino bags under fire: Italian court probes worker exploitation in luxury supply chain
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. Tired of too many ads? go ad free now 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. Tired of too many ads? go ad free now 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.
Time of India
16-05-2025
- Business
- Time of India
Valentino unit put under court administration over labour exploitation
HighlightsAn Italian court has placed Valentino Bags Lab Srl, a unit of the fashion brand Valentino, under judicial administration for a year due to worker abuse detected in its supply chain, marking the fourth luxury brand targeted for similar labor issues since 2023. The Milan court found that Valentino Bags Lab subcontracted production to Chinese-owned firms in Italy that exploited workers, highlighting a systemic issue of labor violations within Italy's luxury fashion industry. Investigations revealed that workers at subcontracted workshops faced extreme exploitation, including lack of employment contracts, irregular immigration status, and unsafe working conditions, with some forced to sleep at their workplaces for continuous production. An Italian court has placed a unit of fashion brand Valentino under judicial administration for a year after uncovering worker abuse inside its supply chain, in the latest in a string of cases that have tainted the image of Italy's luxury brands. Valentino Bags Lab Srl is the fourth fashion company to be targeted by the same Milan court for similar labour issues since 2023. An Italian unit of French luxury giant LVMH's Dior, Italy's Armani, and Italian handbag company Alviero Martini were also placed under administration. The court found that Valentino Bags Lab, which makes Valentino-branded handbags and travel articles, subcontracted production to Chinese-owned firms in Italy that exploited workers, according to the 30-page ruling reviewed by Reuters. The Milan court found it "culpably failed" to adequately oversee its suppliers in order to pursue higher profits. The court will now appoint an external administrator to verify the company meets all the judges' demands that it implement effective tools to control its supply chain. Valentino said in a statement it would cooperate with the authorities to better understand what prompted the measures. It said it had intensified controls on suppliers in the last few years. Checks include "audits conducted by certified third parties covering the entire production process" and have led the company to ditch producers that did not meet its standards. The administration will be lifted earlier if the unit brings its practices into line with legal requirements, as was the case with the three companies previously targeted by the court. Valentino is majority-owned by Qatari investment fund Mayhoola. French fashion group Kering bought a 30% stake in the Italian brand in 2023, with an option to purchase the entire share capital by 2028. Kering did not respond to Reuters' requests for comment. Mayhoola could not immediately be reached for comment. In their ruling, the Milan judges wrote that despite the previous cases being widely reported "Valentino Bags Lab kept operating with suppliers who exploit workers and use labour in violation of safety regulations, without in any way increasing its control systems". The prosecutors in the case said the violation of rules among fashion companies in Italy was "a generalised and consolidated manufacturing method". Italy is home to thousands of small manufacturers that make up 50 per cent-55 per cent of global luxury goods production, consultancy Bain has calculated. "After Armani and Dior, now Valentino... these things tarnish the 'Made in Italy' prestige," said Flavio Sciuccati, senior partner at consultancy The European House - Ambrosetti Group. WORKING DAY AND NIGHT Investigations by Italian magistrates have over the last years exposed widespread exploitation of workers in the fashion and luxury supply chain. In the case against Valentino Bags Lab, Carabinieri police from the Milan labour protection unit inspected seven Chinese-owned workshops around the financial capital from March to December 2024, including one of the firms involved in the Dior case last year. They identified 67 workers, nine of whom had no employment contract. Three were irregular immigrants. Workers were made to sleep in the workplace in order to have "manpower available 24 hours a day", according to the ruling. Electricity consumption mapped by investigators showed "seamless day-night production cycles, including during the holidays", the ruling shows. In addition, safety devices had been removed from the machinery to allow them to operate faster, it said. One of the Chinese-owned contractors, Bags Milano Srl, had been working exclusively for Valentino Bags Lab since 2018, producing around 4,000 bags per month for between 35 and 75 euros ($39-$84) each, it said. These same bags retail for between 1,900 and 2,200 euros, according to two judicial sources. The judges said the owner of Bags Milano subcontracted the production of some of the Valentino bags to other Chinese-owned workshops. According to the ruling, the owner said Valentino Bags Lab did not formally authorise this but was aware of it and "turned a blind eye" given how much work there was. The owners of the contracting and subcontracting companies are under investigation by Milan prosecutors for exploiting workers and employing people off the books. Valentino Bags Lab itself faces no criminal probe. Milan's court proposed a scheme in June 2024 under which luxury firms should strengthen checks on suppliers to ensure they respect labour laws.
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.
