More than Twelve Companies Have Been Asked for Documents in Investigations Into Italy's Supply Chain

MILAN Milan prosecutors have initiated preliminary inquiries into over a dozen fashion companies to examine their supply chain practices. Reports indicate that 13 firms have been asked to provide documents detailing governance structures and supply chain management as part of investigations into potential labor abuses at subcontractors.

The companies under review include Prada, Versace, Gucci, Dolce&Gabbana, Ferragamo, Missoni, Givenchy Italia, Yves Saint Laurent Manifatture, Alexander McQueen Italia, Adidas Italy, Off-White Operating, Coccinelle, and Pinko.

Unlike prior cases in which Giorgio Armani Operations, Diors Italian branch, Loro Piana, and Tods Group faced judicial scrutiny over suppliers labor practices, these current investigations remain in the early stages. Prosecutors have not requested court-appointed administration for any of the firms involved.

The documentation requests focus on evaluating governance frameworks, compliance with labor standards, working hours, and health and safety protocols. Companies are expected to identify and correct potential shortcomings independently.

The ongoing cases, particularly concerning Chinese-owned luxury producers in Italy, have cast a spotlight on illegal labor practices, raising concerns over the broader reputation of the Italian fashion sector.

Diego Della Valle, chairman and CEO of Tods Group, has publicly defended his companys ethical standards and challenged claims that Made in Italy products lack oversight. He invited prosecutor Paolo Storari to inspect the companys facilities after allegations of labor violations surfaced at subcontractors in Lombardy and Marche.

Industry bodies such as Camera Nazionale della Moda Italiana and Confindustria Moda have called for a nationwide auditing system. They have engaged with Minister of Enterprises and Made in Italy, Adolfo Urso, to propose regulations addressing fast-fashion imports and to protect supply chains from illegal practices.

On Thursday, Confindustria Moda and Confindustria Accessori Moda issued a statement emphasizing the need to combat illegal activities across the sector while protecting worker rights and ensuring transparency. They also highlighted concerns that media sensationalism could unfairly damage the reputation and economic stability of the fashion industry.

The associations stressed that premature public exposure of companies during ongoing investigations could erode trust among consumers, investors, and supply chain partners, potentially harming a sector crucial to Italys economy and cultural identity.

Author: Benjamin Carter