Italian police searched the headquarters of 13 luxury fashion firms as part of an inquiry into whether brands sourced goods from hundreds of underground workshops, many staffed by cheap Chinese labour. Authorities recovered clothes and paperwork linking major labels to Chinese-run sweatshops, which prosecutors have likened to modern slavery concentrated around Prato in Tuscany. MPs from opposition parties have urged Prime Minister Giorgia Meloni to discuss the issue in parliament, while Milan prosecutors may take legal action if companies fail to correct identified problems.
Luxury Under Scrutiny: Italian Police Raid 13 Fashion Houses in Wide-Ranging Sweatshop Probe
Italian Police Raid 13 Luxury Fashion Headquarters in Sweatshop Investigation
Italian police have carried out searches at the headquarters of 13 luxury fashion houses as part of a broad criminal probe into the use of underground workshops and exploitative labour practices.
Officers visited the offices of well-known labels and requested documents from management. Among the names reported in connection with the operation are Prada, Versace, Dolce & Gabbana, Missoni and Salvatore Ferragamo. Authorities said other firms tied to the inquiries include Adidas Italy, Off-White Operating, Givenchy Italia and Alexander McQueen Italia.
Investigators are examining whether these brands sourced garments, bags, belts and other items from hundreds of underground workshops operating in Italy — many of which reportedly rely on cheap Chinese labour. Police have said they want to inspect supplier and subcontractor lists and review procedures companies use to monitor their supply chains.
None of the 13 companies has been formally placed under investigation so far. Authorities said firms will be given the opportunity to hand over requested records and to voluntarily address any problems identified. If companies do not take appropriate corrective action, prosecutors in Milan could pursue legal measures, Reuters reported.
Underground factories in Italy produce both fast-fashion goods and counterfeit designer items, a trade estimated to be worth billions of euros annually. The town of Prato in Tuscany — home to a large Chinese community — is widely regarded as a hub for this sector.
Competition among Chinese-owned firms in the sector can be intense and has occasionally turned violent. In April, an alleged Triad member and his girlfriend were shot dead in Rome in what authorities suspect was a clash between rival clans vying for control of facilities where migrants live in cramped dormitories and work long hours.
Police linked the 13 fashion houses to the probe after discovering clothes and paperwork bearing brand references during dozens of searches of Chinese-run sweatshops, operations prosecutors have described as amounting to modern slavery.
Marco Grimaldi, an opposition MP with the Greens and Left Alliance, said the fashion sector relies on "clandestine Chinese factories that operate as sub-contractors (for big firms) in conditions of exploitation and illegality." He warned the issue is systemic and damages the reputation of Italian high fashion.
Emma Pavanelli, an MP from the Five Star Movement, urged the prime minister to address parliament and called for a paradigm shift so "workers in this sector are no longer treated like slaves."
Prosecutors in Milan have launched a string of investigations in recent years into alleged worker exploitation, examining well-known houses including Dior, Armani, Valentino, Loro Piana and Tod’s. In May, a group of Italian fashion brands signed an accord aimed at combating worker exploitation across the sector.
What Happens Next: Authorities will review the supplied documents to establish if and how major brands are connected to exploitative subcontracting. Firms that fail to address any identified breaches may face prosecutions in Milan.
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