French luxury giant Chanel has confirmed it is fully co-operating with Italian prosecutors following a police raid on its offices, part of a massive, ongoing crackdown on worker exploitation within the high-end fashion supply chain.
The Carabinieri labor unit visited the headquarters of Chanel and eight other luxury brands, including Bulgari, Moncler, and Brunello Cucinelli, demanding governance records and supply-chain audit documentation.
The sweep was triggered after police uncovered sub-standard workshops, allegedly exploiting undocumented Chinese workers to manufacture packaging items like garment bags, shopping pouches, and boxes. These workshops were operating as low-tier subcontractors for intermediate packaging suppliers used by the major fashion houses.
Chanel moved quickly to distance itself from the controversy, revealing that it had actually caught the issue weeks before the raids. According to the company, it received an internal alert about potential labor abuses on May 18 and ordered its primary packaging supplier to sever all ties with the problematic subcontractor within 48 hours.
Importantly, judicial documents clarify that none of the nine fashion houses are under formal investigation themselves, nor are they facing court-appointed administration, a strict corrective measure Milan prosecutors have previously slapped on other luxury groups to overhaul their oversight.
Chanel reiterated its commitment to legal compliance, emphasizing that it enforces the highest social and environmental responsibilities across its network and subjects all suppliers to rigorous, regular audits.
–Reuters/ChannelAfrica–
