Chanel says it is cooperating in Italy labour probe, has cut ties with subcontractor

LONDON, July 17 (Reuters) - Parisian fashion house Chanel said on Friday it was fully cooperating with Italian authorities in a labour exploitation investigation involving subcontractors of the luxury goods supply chain.

Italian police on Thursday visited the headquarters of nine luxury brands, including Chanel, Moncler and Brunello Cucinelli, seeking documents related to governance and supply-chain controls as part of an investigation into alleged worker exploitation at subcontractors.

Chanel said it had moved weeks ago to cut ties with the subcontractor concerned, instructing its packaging supplier to end the relationship two days after receiving an alert on May 18. The contract termination process launched immediately.

"The information reported in the media was already known to Chanel," the French luxury group said in a statement.

According to a judicial document reviewed by Reuters, none of the nine companies is under investigation, and prosecutors have not sought court-appointed administration for any of them.

Chanel added that it applied the highest standards of social and environmental responsibility across its supply chain, and that suppliers and subcontractors were subject to regular assessments, audits and controls.

It said the sites concerned had undergone extensive audits and additional verification measures.

(Reporting by Helen Reid; Writing by Giulia Segreti; Editing by Claudia Cristoferi and Jan Harvey)