Four former employees of a Chanel Hong Kong warehouse have been sentenced to between four and seven years in prison for conspiring to steal more than 700 items destined for destruction, according to WWD. The judgment is said to have been handed down on Monday, 3 August, by the Hong Kong High Court, according to FashionUnited France.
The events date back to early 2017: the defendants reportedly organised, between 2016 and 2017, the diversion of 123 wallets and 601 handbags belonging to Chanel Hong Kong Ltd. Police intercepted the group as it was moving 33 boxes on six pallets out of the Goodman Interlink logistics site, in Tsing Yi, where products slated for destruction were stored on the 23rd floor before being sent to the 5th floor to be shredded.
A disputed value
The estimated value of the stolen items is said to be around 19 million Hong Kong dollars, or nearly 2.4 million US dollars, according to WWD. The South China Morning Post, for its part, cites 691 bags and 123 wallets, or more than 800 pieces, for a value of 8.7 million Hong Kong dollars. This discrepancy in valuation is likely due to the assessment methods used by the different judicial proceedings or by the media, with no further clarification from the authorities.
Two of the four defendants reportedly pleaded guilty to conspiracy to steal before the trial, while the former warehouse manager and another employee were reportedly found guilty following a full trial. All 724 items were ultimately recovered and then destroyed as planned, with no financial loss for Chanel, according to the evidence presented in court. Because of the case's exceptionally long duration, nearly ten years between the events and the judgment, the sentences are said to have been reduced, according to FashionUnited France.
A destruction system since abandoned
The items in question fell under a shredding system that has since disappeared, which at the time destroyed between 10,000 and 20,000 products every six months in Hong Kong. This practice was intended to protect the brand's exclusivity and prevent products from leaking onto the grey market. Chanel responded in a statement sent to WWD: « les chiffres mentionnés pendant le procès ne reflètent plus les pratiques mondiales actuelles de Chanel » (the figures mentioned during the trial no longer reflect Chanel's current global practices).
The house now manages all of its unsellable products worldwide, including unsold items, defective goods and surplus stock, through L'Atelier des Matières, created in 2019. This structure has since been integrated into Nevold, the circular materials division formally launched by Chanel in 2025, which also brings together Filatures du Parc and Authentic Material.
This court case resurfaces as the European Union's ecodesign regulation is set to progressively ban the destruction of unsold clothing, footwear and accessories, first for large companies, then for medium-sized companies from 2030. Today, several luxury houses are investing tens of millions of euros in recycling and the circular economy.
