Italian Police Raid Bulgari and Chanel Over Alleged Chinese Worker Exploitation

Milan raids on luxury firms

Italian police carried out raids on Thursday at the offices of luxury fashion houses including Bulgari and Chanel as part of a Milan prosecutors’ investigation into alleged labour exploitation in luxury supply chains. Milan prosecutor Paolo Storari confirmed the probe to AFP and said the inquiry also involves Brunello Cucinelli, Etro, Goyard Italia, Jacob Cohën Company, Moncler and Stefano Ricci. The investigation centres on outsourcing production to subcontractors that pass work on to other companies, a chain that prosecutors say has led to manufacturers employing Chinese workers in breach of labour laws and workers’ rights.

In a separate Reuters account, the operation is described as police visiting the headquarters of nine high-end fashion firms and demanding documents on governance and supply-chain controls as part of an investigation into alleged exploitation at subcontractors. Reuters also reported that none of the nine companies is under investigation and prosecutors have not sought court-appointed administration for any of them, according to a judicial document reviewed by Reuters.

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Brands respond, prosecutors expand

Brunello Cucinelli said in a statement it was surprised and deeply saddened that part of the materials intended for its packaging were found at an unsuitable workplace, despite supplier checks and fair pricing, and it pledged full cooperation to protect workers and the wider 'Made in Italy' brand. The Reuters report says the move on Thursday is the second of its kind after the Carabinieri labour unit in Milan carried out a similar operation in December 2025 at the headquarters of 13 other top fashion brands including Gucci, Prada and Dolce & Gabbana. Reuters further states that a nine-page decree seen by Reuters said the additional brands were drawn into the probe after police found products and subcontracting documents linked to them during earlier searches of two workshops accused of exploiting undocumented Chinese workers.

The bluewin.ch report adds that the large-scale investigation led by the Milan public prosecutor had already uncovered violations of wage and working conditions in Italian ateliers and was expanded by the end of 2025 to include thirteen major luxury brands, including Prada, Givenchy and Dolce & Gabbana. In the same bluewin.ch account, Industry Minister Adolfo Urso said last year that the reputation of “Made in Italy” was under “attack,” while the raids were described as targeting brands suspected of hiring subcontractors in Italy who exploit Chinese workers.

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What’s at stake next

The Reuters account says the operation follows an investigation that has placed seven other fashion groups under court-appointed administration, in a series of cases that have tarnished the industry's image over the past three years. Reuters also reports that the Milan court later lifted the measures against the seven companies after they brought their practices into compliance with the judges' requirements. Euronews frames the underlying issue as the near-ubiquitous practice of brands subcontracting work to suppliers that in turn contract to others, ending up with firms who employ Chinese workers in exploitative conditions.

Euronews adds that the raids are part of a wider investigation by Milan prosecutors that has uncovered alleged labour exploitation in the supply chains of several luxury brands, including Prada, Givenchy and Dolce & Gabbana. Across the coverage, the Italian government is described as having previously defended the luxury fashion sector, with Industry Minister Adolfo Urso saying last year the reputation of Italian luxury brands was

under attack ,

Reporting for this sectionGlobal Banking & Finance ReviewEuronews