Four held in Prato labour exploitation probe linked to Piazza Italia

Prato Italy-- Authorities in Prato have placed four Chinese nationals under precautionary measures as part of an expanding investigation into labour exploitation in the textile sector, with links to the Italian fashion chain Piazza Italia, which has been under judicial administration since February.

The measures, ordered by an investigating judge at the request of prosecutors, represent the second phase of a probe led by the Prato Public Prosecutor’s Office into illegal labour intermediation and worker exploitation. 

Prosecutors allege that the suspects, members of the same family, built a profitable operation by forcing employees to work between 13 and 16 hours a day, seven days a week, often for wages below legal standards.

Workers, many of them migrants, were reportedly housed in overcrowded dormitories located just metres from the factories where they worked, reflecting what investigators describe as a wider pattern within parts of Prato’s textile district.

A 53 year-old man, identified as the de facto owner of two firms, Infinity Design and Chic Girl s.r.l., has been placed under house arrest with an electronic tag. His wife, son and daughter-in-law have been banned from residing in the province of Prato and barred from carrying out business activities for one year.

According to prosecutors, the companies maintained extensive commercial relations with several clients, including Piazza Italia, a nationwide brand operating through franchised outlets. From 2022 onwards, the company is said to have outsourced a significant share of its clothing production to these Tuscan suppliers.

Although the retailer itself is not subject to criminal charges, a court in Florence placed it under judicial administration earlier this year, citing a failure to adequately oversee its supply chain. The measure allows the company to continue operating under court supervision while compliance is restored.

The investigation, coordinated by chief prosecutor Luca Tescaroli, forms part of what magistrates describe as a “multi-level” strategy aimed at tackling both those directly responsible for exploiting workers and companies that benefit from reduced production costs linked to illegal practices.

Investigators estimate that such arrangements allowed profit margins of up to 300 per cent compared with lawful manufacturing.

The case is seen as a significant step in efforts to address labour abuses in Italy’s fast fashion supply chains, particularly in industrial districts such as Prato, where authorities say exploitative practices have in some instances become structurally embedded.

Further developments are expected as the investigation continues.

PS