A Milan court has ordered that Manufactures Dior Srl, a leather goods company fully owned by Christian Dior Italia (within the French LVMH Group), be placed under administration for a period of one year. At issue was the exploitation of undocumented workers along its subcontracting chain. Product manufacturing has been undertaken in workshops that operate under largely illegal practices controlled by Chinese entrepreneurs in the Italian region of Lombardy. The court decision is part of an investigation by Milan's law enforcement agencies into the world of fashion and luxury goods, which has already led to other subsidiaries of a number of major corporate groups being placed under judicial administration.
“The use and exploitation of irregular and clandestine labor”, reads the decision of the Milan court on 10 June 2024, which places Manufactures Dior under judicial administration (the company’s name does not appear in the documents). The investigation conducted by the Carabinieri (police) points to shortcomings in the subcontracting chain, noting that the parent company was ‘incapable of avoiding or containing’ the exploitation of workers in the subcontracting space, having failed to implement
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Article authors
Hélène Martinelli
Freelance