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MILAN — A Milan court rejected prosecutors’ request to place Paul & Shark’s parent Dama SpA and Aspesi’s Alberto Aspesi & C. SpA under judicial administration for their alleged negligence in auditing their suppliers.
Judge Roberto Crepaldi 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.
The development comes as part of a labor abuse case filed earlier this month 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 are based in Garbagnate Milanese, in the Milan suburbs, and allegedly exploited their workers in reportedly underpaid, 14-hour work shifts.
Crepaldi attributed the full responsibility to the manufacturing companies, whose owners are under investigation.
Over the past two years supply chain scandals have rocked the luxury fashion industry in Italy, shaking both its reputation and business practices.
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