Following production subsidiaries of Armani, Dior and Valentino, Loro Piana (a historic Italian luxury brand best known for fine wools, now controlled by LVMH) has been placed under judicial administration for a year for failing to verify working conditions in the production chain. The company has negligently contributed to a system of labour exploitation, particularly of Chinese workers in illegal workshops in northern Italy.
In a ruling on July 14, the Milan court placed Loro Piana (controlled by the LVMH group) under judicial administration for a year. According to the magistrates, the company facilitated “through negligence” the exploitation of labour in a subcontracting chain, due to a general lack of preventive measures and a flawed internal audit system. Loro Piana did not verify the business capacity of outsourced production companies nor carry out inspections or audits to ensure that the production chain was functioning properly alongside adequate working conditions.
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