Probe into Prada’s ‘zero tolerance’ supply chain results in 200 suppliers being removed


According to the Financial Timessince 2020, the Milan-based company has carried out more than 850 on-site inspections of its Italian suppliers and subcontractors, including overnight walkthroughs outside subcontractor factories. More than a quarter of the inspections resulted in dismissal.

In its audit, it found evidence of serious breaches of labor law, including the presence of dormitories in factories where workers slept. However, these were less frequent than other forms of non-compliance, such as inadequate health and safety measures and problems with how waste is managed.

The report says Prada currently has around 1,000 registered suppliers and subcontractors.

Italy’s luxury fashion industry has come under intense scrutiny during an expansive period and acrimonious investigation from prosecutors in Milan over alleged labor abuses in its domestic supply chain.

Last October, the Prosecutor’s Office in Milan requested that the shoemaker Tod’s be put under judicial administration for alleged exploitation of workers in its factories based in China.

The news followed Italy’s industry minister was reportedly weighing the introduction of a certification scheme after LVMH’s Loro Piana brand was put into receivership for alleged worker exploitation.

Although Prada is not under investigation, Milan prosecutors in December asked the group to release information about its supply chain.

The luxury brand told the FT it carried out 188 supplier inspections last year, which led to 43 redundancies.

The rate of decline has slowed since Prada began audits in 2020, when it conducted 143 inspections, more than half of which resulted in the termination of supply contracts. The attrition rate “came down because we took a zero-tolerance approach,” Prada said.

Prada did not return a request for comment when approached by Just Style.

“Prada’s ‘zero tolerance’ supply chain probe results in 200 suppliers being cut” was originally created and published by Just stylea trademark owned by GlobalData.


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