Chanel has confirmed it is cooperating with Italian authorities investigating alleged labour exploitation at subcontractors, stating it cut ties with the concerned supplier weeks ago. The French fashion house instructed its packaging subcontractor to end the relationship just two days after receiving an alert on May 18, according to a statement released Thursday.
For Chanel, the timing is particularly sensitive as the brand continues to expand its manufacturing footprint in Italy and France. The house’s response — rapid disengagement coupled with public cooperation — reflects a playbook that luxury groups are developing as regulatory scrutiny intensifies across the European Union.
Chanel’s swift severance of the relationship signals the house’s awareness that supply chain scrutiny has become one of the most consequential reputational risks facing European luxury houses. The industry has been under mounting pressure from regulators and consumers alike to prove that its artisanal veneer is not built on exploitative labour practices.
The probe, conducted by Italian police, has visited nine high-end fashion firms including Brunello Cucinelli and Moncler as part of a broader investigation into working conditions across the luxury supply chain. Authorities are examining whether subcontractors violated labour laws by underpaying workers and subjecting them to unsafe conditions.
The investigation casts a shadow over Italy’s fashion manufacturing ecosystem, where high-end brands rely on a dense network of small workshops and subcontractors to produce everything from leather goods to ready-to-wear. The line between craft tradition and labour violation has become increasingly difficult for brands to navigate.
