Back to the archive

The encyclopedia · Product & Design · Operational decision · 2025

Valentino's bag unit subcontracted to illegal workshops — a Milan court took it over

Carabinieri found unsafe, unregistered workshops making Valentino bags — a Milan court ruled the brand had failed to supervise its own supply chain.

Valentino Bags Lab · 2025-05-15

What happened

Valentino Bags Lab, based in Rosate outside Milan, makes bags and travel goods for the Valentino Group, majority-owned by Qatar's Mayhoola fund since 2012. It produced roughly 4,000 bags a month, priced to the workshops at €35–75 each, by subcontracting production down a chain of small Chinese-run manufacturers in the area.

Carabinieri from Milan's labour inspection unit found seven of those workshops operating illegally and unregistered. Of 76 workers identified, nine were working entirely off the books and three had no documentation at all. Inspectors documented wages below legal minimums, non-compliant hours, unsafe conditions, safety devices removed from machinery, improperly stored chemicals, and workers housed in dormitories built into the workshops themselves.

On May 15, 2025, the Milan Tribunal's Prevention Measures Section — the same court section used against organised-crime infiltration of supply chains — placed the company under judicial administration, finding it had failed to prevent labour exploitation it should have detected in its own contractor network. Carabinieri separately issued €286,000 in fines and €35,000 in administrative penalties.

Valentino Bags Lab was the fourth Milan-area fashion supplier hit with the same measure since 2023, after Alviero Martini, Armani Operations and Dior Manufactures — all of which had their receiverships lifted once they put corrective controls in place.

Why it happened

  • The brand subcontracted production down a chain of small workshops without verifying that the businesses actually doing the manufacturing were registered or legally staffed.
  • Per-unit pricing (€35–75 per bag) left little margin for a workshop to pay legal wages and run a compliant shop floor, creating the incentive for the conditions inspectors found.
  • A court had already placed three other Milan-area luxury suppliers under the same measure since 2023, and the pattern repeated anyway.
What it costjudicial administration; €321,000 in finescostly

The lesson

A brand that prices its subcontractors thin and never audits how they staff the shop floor will eventually have a court, not an auditor, find out what happened there.

Aftermath

Valentino Bags Lab was placed under a court-appointed administrator for up to a year, following the pattern set by Dior, Armani and Alviero Martini, whose receiverships ended once each company adopted supply-chain controls the court accepted. The case renewed scrutiny of "Made in Italy" labelling on luxury goods produced through multi-tier subcontracting.

Sources

spotted an error? The club wants to know.

Comments · 0

    Sign in to join the comments.

    More like this

    Somewhere, someone solved the problem this company failed at. 2nd Opinion →