Valentino Welcomes Early Conclusion of Judicial Administration on Manufacturing Subsidiary Over Labor Practices

MILAN — Valentino said Tuesday it has welcomed the “early conclusion” of the judicial administration imposed since May 2025 on its subsidiary Valentino Bags Lab Srl for its alleged negligence in properly auditing its supply chain partners.

The measure was originally supposed to be lifted after 12 months, next May.

Valentino said in a statement the decision to revoke the judicial administration was taken because the subsidiary — a unit of the fashion company dedicated to the manufacturing of leather goods and accessories — “ensured full cooperation with the court-appointed judicial administrator, actively contributing to a constructive dialogue that accelerated and strengthened an improvement process already initiated in previous years.”

Milan judges Orsola De Cristofaro, Maria Rispoli and Lucia Spagnuolo Vigorita lifted the measure, touting Valentino Bags Lab’s full cooperation and compliance with court-mandated procedures to enhance its auditing system and cut ties with unsuitable subcontractors.

“The company seized the opportunity to strengthen its internal control systems as well as establish a new management and organizational model aimed at promoting transparency and compliance with the law,” the ruling reads.

“This cooperation is part of Valentino’s broader commitment to transparency, supply chain integrity and respect for workers and consumers,” the Roman couture house said. “The work carried out — through strengthened governance safeguards and a more targeted supplier‑qualification process — has further enhanced internal systems for supply chain control and monitoring, consolidating standards already in evolution. The conclusion of the measure allows Valentino Bags Lab Srl to fully resume the functioning of its corporate oversight bodies, within an ordinary governance framework, while benefiting from the progress achieved,” it said.

Valentino has been the majority shareholder in Valentino Bags Lab Srl since 2014 when it acquired a 51 percent stake in manufacturer Pelletterie Sant’Agostino and renamed it. The latter’s former owners retained a 49 percent stake in the company.

Last year, Milan prosecutor Paolo Storari launched an investigation into alleged worker exploitation and sweatshop schemes at Valentino Bags Lab’s subcontractors. Prosecutors also argued that the Valentino manufacturing subsidiary was negligent in properly auditing its supply chain partners and requested the judicial administration procedure to correct and enhance audits and oversight through court-mandated procedures.

Over the past two years supply chain scandals have rocked the luxury fashion industry in Italy, shaking both its reputation and business practices.

Investigations by a Milan court that uncovered ties of luxury brands such as Tod’s, Loro Piana, Dior and Giorgio Armani, among others, to subcontractors allegedly involved in sweatshop schemes have raised concerns about the industry’s ability to manage its supply chains effectively.

Like Valentino, all the above brands have been put under judicial administration to correct and enhance audits and oversight through court-mandated procedures, with the exception of Tod’s, which obtained that the judicial administration procedure be handled by an Ancona, Italy, court, which has yet to rule.

Simultaneously, the maker of Gommino loafers and three of its managers are being investigated by prosecutors over suspected labor abuses and accused of allegedly ignoring the findings of inspections by local authorities into the company’s subcontractors.

Dior’s and Giorgio Armani’s probes have been fully resolved, and the judicial oversight has been lifted, as is Valentino’s per Tuesday’s ruling.

Last month Paul & Shark and Aspesi were also investigated for alleged negligence in auditing their suppliers, with prosecutors requesting they be placed under judicial administration. However, a Milan judge ruled against the prosecutors’ move, arguing that the legal grounds for the requested measure were not met as there is no proof that Paul & Shark’s chief executive officer Andrea Dini and Aspesi’s board member Francesco Umile Chiappetta acted “in concert” in committing the offense.

Meanwhile, last fall some 13 fashion companies fell under the scrutiny of the same Milan prosecutors and were asked to provide documents on governance and supply chain audits for preliminary probes.

The names involved included Prada, Versace, Gucci, Dolce & Gabbana, Ferragamo, Missoni, Givenchy Italia, Yves Saint Laurent Manifatture, Alexander McQueen Italia, Adidas Italy, Off-White Operating, Coccinelle and Pinko. None of these have been put under judicial administration.