Valentino Bags Lab faces judicial supervision in the midst of labor investigation

A Milan Court has placed Valentino Bags Lab SRL, manufacturer of trips and travel accessories for the Italian fashion house Valentino Spa, under judicial administration, after the accusations that the company could not monitor its suppliers. According to reports, these suppliers outsourced production to Chinese property workshops accused of exploiting workers and violating Italian labor laws.

The Court imposed a period of judicial supervision of a year, but confirmed that it would end before if Valentino Bags Lab align its operations with the legal standards. The authorities have not submitted any criminal position against the company.

In its ruling, the court declared that the company “failed guilty” to supervise its subcontractors in search of greater profit margins. The researchers found that Valentino Bags Lab did not evaluate the real production capacity of their suppliers or verify the working conditions. The Carabinieri Labor Protection Unit carried out the investigation, with the public prosecutor Paolo Storai coordinating the effort.

Between March and December 2024, the agents of the law inspected seven workshops led by Chinese near Milan, including one previously linked to a case of Dior. They found 67 workers in these sites, including nine unregistered individuals and three undocumented immigrants. The ruling declared that the workshop operators forced the workers to sleep in the site and kept them available for the production of 24 hours, including the holidays. The energy use data showed continuous day -day cycles, and the operators had allegedly eliminated the safety devices of the machinery to increase the output.

Since 2018, one of the suppliers, the Milano SRL bags, has worked exclusively for Valentino Bags Lab, producing around 4,000 bags per month at costs ranging from € 35 to € 75 ($ 39.20– $ 84). Two judicial sources reported that the retailers later sold the same articles for € 1,900 to € 2,200. Milano owner allegedly outsourced the additional work to other workshops operated by Chino. The authorities are now investigating the owners of primary and secondary companies for labor exploitation and illegal employment practices.

The court said that Valentino Bags Lab “continued working with suppliers that exploit workers and violate security standards”, even after similar practices received media coverage that involved other important fashion houses.

This case marks the fourth time that the Judicial Power of Milan has been addressed to a fashion company since December 2023. Officials previously took measures against Italian Dior operations (LVMH), Armani and Alviero Martini Spa. In those cases, the court raised judicial supervision before companies implemented corrective measures.

In 2023, the French luxury conglomerate Kering acquired a 30% stake in Valentino of the Qatar Mayhola Investment Fund, with the option of acquiring full property by 2028.

The Milan Court is now asking for broader reforms, urging luxury brands to improve the supervision of the supply chain and guarantee compliance with labor laws. According to the consultant Bain & Company, Italy represents 50% to 55% of the world production of luxury goods, which is driven by networks of small subcontracted manufacturers.

Fashionnetwork.com with Reuters