Loro Piana Placed Under Judicial Administration for Labor Exploitation in Italy

Loro Piana, a high-end Italian cashmere brand owned by LVMH, has been placed under judicial administration by a Milan court for one year due to failure in preventing labor exploitation within its supply chain. The court found that Loro Piana subcontracted production to Chinese-owned workshops operating in Italy that exploited workers with excessive hours and inadequate wages, and that the company negligently failed to conduct proper oversight in pursuit of higher profits. This marks the fifth luxury fashion brand subjected to similar judicial supervision by Milan authorities since 2023, including units of Dior, Valentino, Armani, and Alviero Martini. An external administrator will oversee Loro Piana’s compliance with labor laws, with the possibility of lifting the administration early if satisfactory reforms are implemented, as seen in previous cases. LVMH’s supplier code of conduct mandates fair pay and legal work hours, but the court emphasized that these violations persisted despite a prior non-binding agreement among Italian fashion brands to combat exploitation. While the owners of the subcontracting companies face investigation, Loro Piana itself is not under criminal investigation, and LVMH has not commented publicly on the ruling.