Companies

Loro Piana placed under court administration in Italy over worker exploitation

Jul 18, 2025 Italy

The luxury cashmere label owned by LVMH has been placed under judicial administration for a year due to suspected worker exploitation and insufficient oversight within its supply chain

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.

The company is not under criminal investigation, and the order will be lifted if it complies with the legal requirements before the 12-month deadline set by the court.

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.

Image Credits: prestigeonline.com

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