LVMH-owned luxury brand Loro Piana placed under court administration over subcontracting to Chinese-owned workshops in Italy that were found to exploit Chinese migrant workers
LVMH-owned luxury brand Loro Piana placed under court administration over subcontracting to Chinese-owned workshops in Italy that were found to exploit Chinese migrant workers
A court in Milan found that Loro Piana had subcontracted its production to two front firms with no manufacturing capacity, which then subcontracted to Chinese-owned workshops in Italy that were found to exploit workers. According to the ruling, the label “culpably failed” to adequately oversee its suppliers in order to increase its profits.
As a result, Loro Piana has been placed under court administration for a year to address shortcomings in its supply chain. An external administrator has been appointed to oversee the brand’s operations during this period.
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Loro Piana is the fifth luxury brand and the second LVMH-owned brand, after Dior, to be found in violation of Italian labour laws since 2023. Other brands found to have allowed illegal and unethical labour conditions to persist throughout their supply chain include Giorgio Armani, Valentino, and the handbag company Alviero Martini.
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The Business & Human Rights Resource Center reports that Chinese workers, including undocumented workers, were subjected to violence, 90 hour workweeks, and EUR4 hourly wage on Italian soil.
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