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Chanel Offices Searched in Italian Labour Probe

Financial Times Companies •
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Chanel offices were searched by Italian authorities investigating allegations of labour exploitation within the luxury industry's supply chain. This marks the first time the French fashion house has been targeted by Milanese prosecutors.

The raid involved nine brands, though none are currently under formal investigation. Chanel stated it is "committed to fully co-operating" and noted that relevant sites in its supply chain had undergone extensive audits. The company received an alert regarding a subcontractor on May 18 and instructed a packaging supplier to terminate its relationship with the subcontractor two days later.

Milan prosecutor Paolo Storari has been leading a crackdown on alleged labour abuse in Italy's luxury supply chain for the past two years. Several brands, including LVMH's Loro Piana, have faced judicial administration. Chanel, a privately held company, operates at the high end of the luxury market, currently benefiting from enthusiasm for its new designer Matthieu Blazy's debut collection.