An Italian court has mandated a one-year judicial administration for a subsidiary of fashion house Valentino following allegations of worker exploitation within its production network.
According to a 30-page judgment obtained by Reuters, Valentino Bags Lab outsourced its manufacturing to Chinese-owned companies in Italy that were allegedly found guilty of exploiting workers.
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The Milan court ruled that the company was at fault for not properly supervising its subcontractors, prioritising profit over proper management.
An external administrator will be appointed by the court to ensure that aValentino Bags Lab complies with all requirements set forth by the judges, including the implementation of effective supply chain monitoring tools.
Valentino has expressed its intention to collaborate with authorities and seek to understand what has occurred.
The company highlighted its recent efforts to enhance supplier oversight through third-party audits covering the entire production process. These inspections have led to the termination of relationships with producers not meeting Valentino’s standards.
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By GlobalDataThe judicial administration could be revoked early if Valentino Bags Lab aligns its operations with legal norms, as has been seen with three other companies previously affected by court orders.
Majority-owned by Qatari investment fund Mayhoola, Valentino saw French fashion conglomerate Kering acquire a 30% stake in 2023, with an option to buy out the company by 2028.
Kering did not comment when approached by Reuters, and Mayhoola was not available for a response.
The Milan judges noted that despite widespread reporting of previous cases, Valentino Bags Lab continued to work with suppliers engaging in worker exploitation and violating safety regulations without enhancing its monitoring systems.
During investigations from March to December 2024, police from Milan’s labour protection unit inspected seven Chinese-owned workshops in Milan, including one involved in 2024’s legal case against Dior.
They identified 67 workers, nine of whom lacked employment contracts and three of whom were undocumented immigrants. Workers were reportedly housed at their workplaces to ensure round-the-clock availability.
Investigations revealed continuous production cycles day and night, even during holidays, with safety features removed from machines for faster operation.
Bags Milano, a contractor working solely for Valentino Bags Lab since 2018, produced approximately 4,000 bags monthly at costs between €35 and €75 each. The bags are then sold for between €1,900 ($2,121) and €2,200 each.
Bags Milano’s owner further subcontracted some production work to other Chinese-owned workshops without formal approval from Valentino Bags Lab but with tacit knowledge due to high demand.
Milan prosecutors are investigating owners of both contracting and subcontracting firms for worker exploitation and illegal employment practices. However, there is no criminal investigation against Valentino Bags Lab itself.
Valentino Bags Lab is the fourth company to come under scrutiny by the Milan court for comparable labour violations since 2023.
The court previously imposed similar measures on an Italian subsidiary of LVMH’s Dior, Armani, and handbag maker Alviero Martini.
