Loro Piana, a historic Italian luxury brand best known for its fine wools, now controlled by LVMH, has been placed under judicial administration for one year for failing to verify working conditions in its production chain, after the production subsidiaries of Armani, Dior and Valentino suffered the same fate. Loro Piana is alleged to have negligently contributed to a system of worker exploitation, particularly of Chinese workers in illegal workshops in northern Italy.
In a ruling on 14 July, a Milan court placed Loro Piana (controlled by the LVMH group) under judicial administration for one year. According to the magistrates, the company facilitated labour exploitation in its subcontracting chain “through negligence”, with a general lack of preventive measures and a flawed internal audit system.Loro Piana did not verify the capabilities of the companies to which it outsourced production, nor did it carry out any concrete inspections or audits to ensure that
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Article authors
Hélène Martinelli
Freelance