Luxury Giants LVMH and Loro Piana Under Fire for Labor Malpractices
An Italian court placed Loro Piana, an LVMH-owned luxury Italian cashmere firm, under judicial administration for subcontracting production to firms accused of exploiting workers. The ruling, part of broader labor investigations in Italy's luxury supply chain, demands compliance with legal standards to lift the administration.
- Country:
- Italy
An Italian court has placed Loro Piana, LVMH's high-end Italian cashmere company, under judicial administration for allegedly subcontracting work to Chinese-owned firms involved in labor exploitation. The decision highlights ongoing labor investigations within Italy's luxury sector.
The court's ruling stipulates a one-year administration for Loro Piana unless the company aligns its practices with legal standards. It criticized Loro Piana Spa for pursuing profits without adequately overseeing suppliers. LVMH acquired a majority stake in Loro Piana in 2013, with the original Italian founders retaining a minority share.
This case marks Loro Piana as the fifth fashion company scrutinized by the Milan court on similar issues since December 2023. Before, other luxury brands like Valentino, Dior, and Armani faced similar actions, but their administrations were lifted ahead of deadlines, unlike the more recent ruling against Valentino.
(With inputs from agencies.)
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- Loro Piana
- LVMH
- luxury
- cashmere
- labor exploitation
- Italian court
- subcontracting
- Valentino
- Armani
- Dior
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