LONDON — Chanel’s little-talked-about system for destroying unsold goods is under the spotlight in Hong Kong, where two former warehouse staffers are on trial, accused of trying to steal 724 handbags and small leather goods that had already been earmarked for destruction.
In a High Court case that opened Tuesday, former warehouse supervisor Ng Yiu-lun and ex-employee Cheung Ka-wai pleaded not guilty to conspiracy to steal. Prosecutors say the pair worked with two warehouse workers during the attempt.
Chanel Hong Kong is said to destroy 10,000 to 20,000 discontinued products every six months as part of its business strategy.
According to the prosecutor’s office, the goods to be destroyed were boxed on the 23rd floor of the Goodman Interlink facility in Tsing Yi, then sent down to the fifth floor to be shredded.
Concerns arose in late 2016, when two warehouse workers, who reported to Ng, began volunteering for overtime in a way managers found unusual. CCTV footage from Jan. 20, 2017 allegedly showed the pair secretly packing merchandise into cardboard boxes and hiding them in a dark corner of the 23rd-floor warehouse.
