When Zhang Dayong lay in a pool of blood on a sidewalk in Rome after being shot six times, few suspected a link to Italy’s storied textile hub of Prato. But a “hanger war” is raging in the city near Florence – turning Europe’s largest apparel manufacturing centre and a pillar of Made in Italy production into a battleground for warring Chinese mafia groups.
Prato authorities are concerned over fast fashion crime – AFP
The situation has become so urgent that Prato’s prosecutor, Luca Tescaroli, has appealed to Rome for help, calling for an anti-mafia division and reinforcements for judges and police. Tescaroli has warned that the escalation in crime has become a huge business operation and moved beyond Italy, particularly to France and Spain.
The gangs are battling to control the production of hundreds of millions of clothes hangers each year – the market is estimated to be worth 100 million euros (115 million dollars) – and the bigger prize of transporting apparel.
The Chinese mafia also “promotes the illegal immigration of workers of various nationalities” for Prato, Tescaroli told AFP. The veteran anti-mafia prosecutor said the “phenomenon has been underestimated”, allowing the mafia to expand its reach.
With one of Europe’s largest Chinese communities, the city of nearly 200,000 people has seen Chinese business owners and factory workers beaten or threatened in recent months, with cars and warehouses burned.
The ex-head of Prato’s police investigative unit, Francesco Nannucci, said the Chinese mafia run betting dens, prostitution and drugs – and provide their Italian counterparts with under-the-radar money transfers. For mafia leaders, “to be able to command in Prato means being able to lead in much of Europe,” Nannucci told AFP.
Chinese groups in the district thrive on the so-called “Prato system”, long rife with corruption and irregularities, particularly in the fast-fashion sector, such as labour and safety violations plus tax and customs fraud.
Prato’s 5,000-odd apparel and knitwear businesses, mostly small, Chinese-run subcontractors, churn out low-priced items that end up in shops across Europe. They pop up quickly and shut down just as fast, playing a cat-and-mouse game with authorities to avoid taxes or fines. Fabric is smuggled from China, evading customs duties and taxes, while profits are returned to China via illegal money transfers.
To stay competitive, the sector relies on cheap, around-the-clock labour, mostly from China and Pakistan, which Tescaroli told a Senate committee in January was “essential for its proper functioning”.
“It’s not just one or two bad apples, but a well-oiled system they use, and do very well – closing, reopening, not paying taxes,” said Riccardo Tamborrino, a Sudd Cobas union organiser leading strikes on behalf of immigrants. Investigators say the immigrants work seven days a week, 13 hours a day for about three euros (3.40 dollars) an hour.
Tamborrino said Prato’s apparel industry was “free from laws, from contracts”. “It’s no secret,” he said. “All this is well known.”
Trucks lumber day and night through the streets of Prato’s industrial zone, an endless sprawl of asphalt lined with warehouses and apparel showrooms with names like “Miss Fashion” and “Ohlala Pronto Moda”.
Open metal doors reveal loaded garment racks, rolls of fabric and stacks of boxes awaiting shipment – the final step controlled by Zhang Naizhong, whom prosecutors dub the “boss of bosses” within Italy’s Chinese mafia.
A 2017 court document described Zhang as the “leading figure in the unscrupulous circles of the Chinese community” in Europe, with a monopoly on the transport sector and operations in France, Spain, Portugal and Germany.
Zhang Dayong, the man killed in Rome alongside his girlfriend in April, was Zhang Naizhong’s deputy. The shootings followed three massive fires set at his warehouses outside Paris and Madrid in previous months.
Nannucci believes Naizhong could be in China, after his 2022 acquittal for usury in a huge ongoing Chinese mafia trial plagued by problems – including a lack of translators and missing files.
On a recent weekday, a handful of Pakistani men picketed outside the company that had employed them, after it shut down overnight having just agreed to give workers a contract under Italian law. Muhammed Akram, 44, saw his boss quietly emptying the factory of sewing machines, irons and other equipment. “Sneaky boss,” he said, in broken Italian.
Chinese garment workers, who are in the majority in Prato and often brought to Italy by the mafia, never picket, union activists say – they are too frightened to protest. Changes in apparel manufacturing, globalisation and migration have all contributed to the so-called “Prato system”. So has corruption.
In May 2024, the second-in-command within Prato’s Carabinieri police was accused of giving Italian and Chinese entrepreneurs – among them a chamber of commerce businessman – access to the police database for information, including on workers.
Police complaints from attacked workers “ended up in a drawer, never reaching the court”, Sudd Cobas organiser Francesca Ciuffi told AFP. Prato’s mayor resigned in June in a corruption investigation, accused of trading favours with the businessman for votes.
In recent months, the union has secured regular contracts under national law for workers at over 70 companies. That will not help those caught in Prato’s mafia war, however, where “bombs have exploded and warehouses have been burned down”, said Ciuffi.
“People who wake up in the morning, quietly going to work, risk getting seriously injured, if not worse, because of a war that doesn’t concern them.”
Lululemon Athletica’s CEO shake-up has put the spotlight on the once-dominant yoga pants maker’s race to wrest back younger and affluent shoppers from rivals and revive its sagging U.S. business.
Calvin McDonald – Reuters
Its shares, which have halved in value this year, rose 10% on Friday following the departure of CEO Calvin McDonald after about seven years in the role.
An athleisure pioneer known for its premium yoga apparel, Lululemon lost ground as newer rivals such as Alo Yoga and Vuori weaned away its core younger shoppers with trendier styles, marketing campaigns and celebrity partnerships.
Meanwhile, established players like Nike and Gap also entered the market with lower-priced styles.
Lululemon “caught the perfect wave in fashion, becoming the trend for the last five years,” said Brian Mulberry, senior client portfolio manager at Zacks Investment Management.
“But as its core customers graduate college and face tighter budgets, affordability is a challenge and a new outfit at Lulu can cost as much as a month’s groceries.”
Lululemon sells a range of yoga, running and training apparel such as Align yoga pants priced at $108 and men’s joggers at $128.
The slow refresh to core styles and product missteps, such as its decision to pull its $98 “Breezethrough” leggings from shelves last year, have led to heavy discounting to clear aged inventory.
At an earnings call late on Thursday, company executives said the board is “focused on a leader with experience and growth and transformation”.
“It’s understandable to think that a strategic overhaul with a new leader at the helm will be a positive, but this opens the door to more questions as to what direction the board will go with a replacement,” said Jay Woods, chief market strategist at Freedom Capital Markets.
Lululemon is the latest global consumer company facing leadership churn as macroeconomic uncertainty fuels increasingly divergent spending patterns.
Lululemon is making efforts to speed up product development, launch fresh styles and drive company-wide efficiencies to offset cost inflation and protect margins.
The company beat third-quarter results, lifted by strong China sales, but issued a weaker-than-expected holiday forecast as higher promotions and increased spending on marketing weigh on margins.
Founder Chip Wilson, who is also Lululemon’s largest independent shareholder, in a statement on Friday slammed the board for “poor succession planning” and value erosion.
He called for an urgent CEO search led by new, independent directors with deep company knowledge to restore a product-first focus. Lululemon did not immediately respond to a Reuters request for comment on Wilson’s statement.
The company’s forward price-to-earnings multiple, a common benchmark for valuing stocks, is 14.66, compared to 31.26 for Nike and Abercrombie & Fitch‘s ratio of 10.8, according to LSEG data.
“The main challenge I foresee for the new leadership is not how consumers see Lulu, but how does it see itself?” said Mulberry.
Ferragamo appoints Alberto Tomba as a brand ambassador. The collaboration with the Italian skiing legend celebrates values shared by the Florentine fashion house: dedication, perseverance, resilience and attention to detail.
Alberto Tomba
Born in 1966, Tomba is the quintessential emblem of an Italy that invests in talent, commitment and the ability to push beyond one’s limits. His career is marked by major international successes, including three Olympic gold medals and two silver medals, two World Championship gold medals and two bronze medals, and 50 World Cup victories.
The Bologna-born skier is also the only athlete to have won races in 11 consecutive seasons (1987-1998) and to have claimed four World Cup discipline titles in giant slalom and four in slalom.
“Tomba’s sporting journey perfectly reflects Ferragamo’s philosophy: every achievement comes from sacrifice, every result from dedication. We share with him a deep sense of authenticity and a love of excellence, values that continue to inspire our daily work,” said Leonardo Ferragamo.
“Being chosen by Ferragamo is an honour,” Tomba commented. “I have always believed that sport and style share a common language: that of passion, rigour and the desire to improve every day. Representing a brand that embodies all this, and that brings Italian beauty and craftsmanship to the world, is a source of great pride.”
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New York–based fashion brand Guizio is expanding its retail footprint with the opening of its second store, at Aventura Mall in Miami, this month.
Guizio expands retail footprint with Miami store opening. – Guizio
Designed in collaboration with Brandi Howe, the new Miami store reflects the brand’s refined aesthetic and contemporary edge, while introducing elements inspired by Miami’s vibrant energy.
It opens with a robust assortment of womenswear, along with an exclusive, limited-edition Puma sneaker available only at the Miami location.
“Opening a Guizio store in Aventura Mall is such a special moment for me,” said Danielle Guizio, founder and designer. “It allows us to connect with our community here and share the brand’s energy in a new way. Bringing our world to Miami felt like a natural next step in growing Guizio, and we’re so excited for what’s ahead.”
Guizio founded her namesake womenswear label in 2014 and continues to offer ready-to-wear collections that celebrate the modern-day woman.
Through her collections, woven knits, structured suiting, and signature corsets are emboldened with asymmetrical details, purposeful cut-outs, ruching and custom hardware. The label has become a favorite among talent such as Sabrina Carpenter, Olivia Rodrigo, Rosalia, and more.
The opening follows the success of the brand’s SoHo flagship in New York, which opened in September 2024.