Chanel Cuts Ties With Subcontractor Amid Italy Labour Probe

Chanel added that it ​applied the highest standards of social and ​environmental ⁠responsibility across its supply chain, and that suppliers and subcontractors were subject to regular assessments, audits and controls.

By :  Reuters
Update: 2026-07-18 13:22 GMT
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London: Parisian fashion house Chanel ​said on Friday it was fully cooperating with ‌Italian authorities in a labour exploitation investigation involving subcontractors of the luxury goods supply chain.
Italian police on Thursday visited the ​headquarters of nine luxury brands, including Chanel, ​Moncler and Brunello Cucinelli seeking documents related to ⁠governance and supply-chain controls as part of an ​investigation into alleged worker exploitation at subcontractors.
Chanel said ​it had moved weeks ago to cut ties with the subcontractor concerned, instructing its packaging supplier to end the relationship ​two days after receiving an alert on May ​18. The contract termination process launched immediately.
"The information reported in the ‌media ⁠was already known to Chanel," the French luxury group said in a statement.
According to a judicial document reviewed by Reuters, none of the nine companies ​is under ​investigation, and prosecutors ⁠have not sought court-appointed administration for any of them.
Chanel added that it ​applied the highest standards of social and ​environmental ⁠responsibility across its supply chain, and that suppliers and subcontractors were subject to regular assessments, audits and controls.
It ⁠said ​the sites concerned had undergone ​extensive audits and additional verification measures.
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