Milan Court Imposes One-Year Oversight on Valentino Bags Lab for Failing to Monitor Subcontractors Accused of Exploiting Workers
In a troubling development for the Italian fashion industry, a Milan court has placed Valentino Bags Lab Srl—the manufacturer of handbags and travel accessories for the prestigious VALENTINO brand—under judicial administration. This decision follows allegations that the company failed to adequately monitor its suppliers, who reportedly subcontracted production to Chinese-owned workshops accused of exploiting workers and violating Italian labor laws.
The court has imposed a one-year judicial oversight period on Valentino Bags Lab, though the court stated that the supervision could end sooner if the company aligns its operations with legal standards. Authorities have not filed any criminal charges against the company, but the court’s ruling stated that Valentino Bags Lab “culpably failed” to oversee its subcontractors in pursuit of higher profit margins. Investigators found that the company did not assess the actual production capacity of its suppliers or verify working conditions.
Between March and December 2024, law enforcement officers inspected seven Chinese-run workshops near Milan, including one previously linked to a Dior case. They discovered a troubling pattern of labor abuses, including 67 workers across these sites, with nine unregistered individuals and three undocumented immigrants. The ruling stated that workshop operators forced workers to sleep on-site and kept them available for round-the-clock production, even on public holidays. Power usage data showed continuous day-night cycles, and operators had allegedly removed safety devices from machinery to boost output.
One of Valentino Bags Lab’s suppliers, Bags Milano Srl, has worked exclusively for the company since 2018, producing about 4,000 bags per month at costs ranging from €35 to €75 ($39.20–$84). Judicial sources reported that retailers later sold the same items for €1,900 to €2,200, raising concerns about the profit margins and potential exploitation in the supply chain. Authorities are now investigating the owners of both the primary and secondary firms for labor exploitation and illegal employment practices.
The court noted that Valentino Bags Lab “continued working with suppliers who exploit workers and breach safety standards,” even after similar practices received media coverage involving other major fashion houses. This case marks the fourth time Milan’s judiciary has targeted a fashion company since December 2023, with previous actions taken against the Italian operations of Dior (LVMH), Armani, and Alviero Martini SpA.
In 2023, French luxury conglomerate Kering acquired a 30% stake in Valentino from Qatari investment fund Mayhoola, with an option to acquire full ownership by 2028. The Milan court is now calling for broader reforms, urging luxury brands to enhance supply chain oversight and ensure compliance with labor laws. According to consultancy Bain & Company, Italy accounts for 50% to 55% of global luxury goods production, which is driven by networks of small, subcontracted manufacturers.
Valentino Garavani SS 2025
