Chanel Responds to Italy Labour Probe and Ends Subcontractor Relationship
Chanel's Response to Italian Labour Investigation
LONDON, July 17 (Reuters) - 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.
Details of the Investigation
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's Immediate Actions
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.
Official Statement from Chanel
"The information reported in the media was already known to Chanel," the French luxury group said in a statement.
Legal and Compliance Aspects
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.
Supply Chain Standards and Audits
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.
(Reporting by Helen Reid; Writing by Giulia Segreti; Editing by Claudia Cristoferi and Jan Harvey)
