The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
An Italian court on Friday placed under judicial administration a company owned by Italian fashion group Armani, accused of indirectly subcontracting its production to Chinese companies that exploited workers.
The court in Milan ordered a one-year receivership for Giorgio Armani Operations, described as an industrial company of the Armani Group, according to the ruling seen by Reuters.
It said Giorgio Armani Operations had entrusted the production of its bags to two firms that subcontracted the work to four Chinese companies which paid their workers €2 to €3 ($3.25) per hour.
Armani Group said in a statement it had “always had control and prevention measures in place to minimise abuses in the supply chain,” adding it would work with the authorities to clarify its position.
ADVERTISEMENT
The Milan public prosecutors’ office has for years been investigating the outsourcing of production by large groups in the fashion and other industries to subcontractors who allegedly exploit workers.
The fashion company Alviero Martini, which had its bags produced by external Chinese workshops, was recently placed under judicial supervision.
With its tradition of sophisticated craftsmanship, Italy is home to thousands of small manufacturers that cover 50-55 percent of the global production of luxury clothing and leather goods, consultancy Bain calculates, against 20-25 percent for the rest of Europe.
Learn more:
Luxury Brands Lag on Efforts to Reduce Forced Labour
Despite strides made to eliminate the use of forced labour in fashion’s supply chain, companies’ lack of transparency is causing them to fall behind, according to a new industry report.
The LVMH-linked firm is betting its $545 million stake in the Italian shoemaker will yield the double-digit returns private equity typically seeks.
The Coach owner’s results will provide another opportunity to stick up for its acquisition of rival Capri. And the Met Gala will do its best to ignore the TikTok ban and labour strife at Conde Nast.
The former CFDA president sat down with BoF founder and editor-in-chief Imran Amed to discuss his remarkable life and career and how big business has changed the fashion industry.
Luxury brands need a broader pricing architecture that delivers meaningful value for all customers, writes Imran Amed.