By I. Hansana, Jadetimes News
Milan Prosecutors Expand Investigation into Fashion Supply Chains
Prosecutors in Milan are expanding their investigation into the supply chains of approximately a dozen additional fashion brands, according to a source familiar with the matter, after an Italian subsidiary of France’s LVMH was placed under court administration due to a worker exploitation probe.
On Monday, a Milan court appointed a commissioner to oversee an LVMH owned manufacturer of Dior branded handbags. This action follows an investigation into four of its suppliers in the vicinity of Italy’s fashion capital, which revealed illegal working conditions. The investigation discovered that workers were subjected to extended hours, often working late into the night and during holidays. Some workers were found to be living on site without regular contracts, and some were identified as illegal immigrants in Italy.
This is the third such ruling this year by the Milan court responsible for pre emptive measures. In April, similar actions were taken against a company owned by Giorgio Armani, which faced allegations of failing to properly supervise its suppliers. At the time, Armani Group stated it had always aimed to minimize abuses in its supply chain.
LVMH declined to comment on the court’s recent decision. Milan prosecutors and Italian police are now examining additional small manufacturers supplying about a dozen other brands, the source said, withholding further details due to the confidentiality of the information.
The appointment of a special commissioner is designed to allow the affected fashion brands time to address and rectify supply chain issues while continuing their operations.
According to court documents reviewed by Reuters, neither LVMH nor Armani are under direct investigation. The focus of the probe remains on the suppliers, who face allegations of worker exploitation.