MILAN — More Italian fashion companies have come under scrutiny for their ties to subcontractors allegedly involved in labor exploitation and sweatshop schemes.
Paul & Shark’s parent Dama SpA and Aspesi’s Alberto Aspesi & C. SpA have been put into judicial administration by a Milan court for their alleged negligence in auditing their suppliers.
The development comes as part of a labor abuse case filed by Milan prosecutors Daniela Bartolucci and Paolo Storari, who reportedly found that both companies subcontracted part of their manufacturing to Chinese-owned firms Gmax 365 Srl and M&G Confezioni Srl, both based in Garbagnate Milanese, in the Milan suburbs, which allegedly exploited their workers in reportedly underpaid, 14-hour work shifts.
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As per Italian law, judicial administration is a legal action enforced as a prevention measure, leveraged by the court as a reprimand of the company, in this case allowing it to impose on Paul & Shark’s and Aspesi’s parents a court-named consultant tasked with helping the enterprises enhance their auditing across the supply chain by implementing adequate operational mechanisms.
In a statement shared with WWD, Aspesi said that “during inspections carried out at the supplier’s premises, no elements emerged that could give rise to doubts as to the compliance of the working environment with applicable regulations. Likewise, the company has never been aware, in any way, of the supplier’s use of premises as dormitories or of the employment of irregular or undocumented workers. Finally, the company has instructed its legal counsel to protect its interests and rights, including vis-à-vis third parties, while making itself immediately available to all competent authorities.”
Aspesi also countered Milan prosecutors’ claims that the subcontractors were paid inadequately to ensure fair wage. “Alberto Aspesi & C. SpA. states that such supplier has always been paid amounts sufficient to ensure that its employees received compensation that could in no way constitute worker exploitation within the meaning of Article 603-bis of the Italian Criminal Code,” the company said.
Aspesi was established in 1969 as a shirt brand by the namesake designer and entrepreneur, who added full men’s and women’s ready-to-wear collections at the end of the ’70s, collaborating with designers including Walter Albini and Franco Moschino. The Armònia fund has owned a controlling stake in the Milan-based brand since 2017, concurrently with the exit of the founder. In 2024 it appointed Alessandro Pescara chief executive officer.
Paul & Shark did not return WWD’s repeated requests for comment.
The company is helmed by CEO Andrea Dini, who holds a 90 percent stake in parent company Dama SpA, with the remainder controlled by his sister Roberta. A menswear specialist, whose DNA is rooted in its love of the sea and sustainability, the brand unveils its collections at Pitti Uomo and boasts a network of over 200 stores, including franchised units.
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, Valentino, 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.
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 is 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 in the company’s subcontractors.
Dior’s and Giorgio Armani’s probes have been fully resolved and the judicial oversight has been lifted.
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.