Loro Piana Faces Legal Action Over Alleged Labor Exploitation
Italian luxury fashion house Loro Piana, a subsidiary of French conglomerate LVMH, has been placed under court administration due to allegations of facilitating labor exploitation through its subcontractors. According to police and company sources, the Milan court issued a decree of judicial administration against the firm, which is known for its high-end cashmere products.
The Italian police labor protection service confirmed the move, stating that the court had taken action against a company operating in the high-fashion sector. While an internal source at Loro Piana confirmed the legal proceedings to AFP, the company itself has not issued any official statement.
The police report indicated that Loro Piana was found “incapable of preventing or curbing labor exploitation within the production cycle.” This was attributed to the company’s failure to implement proper measures to verify the working conditions or technical capabilities of its contractors.
An investigation revealed that the fashion house outsourced the production of its clothing, including cashmere jackets, to a firm that lacked actual production facilities. This company then passed the work to another entity, which used workshops employing Chinese workers to reduce costs. These workshops were found to be violating health and safety regulations, particularly concerning wages, working hours, breaks, and holidays.
According to the police statement, judges from the Milan court determined that Loro Piana had “negligently facilitated” the exploitation. The investigation began in May following a complaint from a Chinese worker who alleged he was beaten by his boss after demanding payment of back wages.
Inspections conducted by the police in factories run by Chinese citizens near Milan uncovered violations of workplace rules, as well as illegally constructed dormitories and unsanitary conditions. As a result, legal actions were initiated against two Chinese nationals who owned the workshops, two Italians for violations of health and safety standards, and seven workers without proper residence permits.
The court imposed fines totaling over 181,000 euros ($211,000) and administrative penalties of approximately 60,000 euros. Additionally, the operations of two Chinese workshops were suspended due to serious safety violations and the use of undeclared labor.
Loro Piana, acquired by LVMH in 2013, is currently led by Frederic Arnault, son of LVMH chairman Bernard Arnault. The company has not commented on the ongoing legal proceedings in Milan.
This case is part of a broader trend in the Italian justice system, which has previously taken similar actions against other fashion houses, such as Armani. In May, the Italian competition authority cleared luxury brand Dior — also owned by LVMH — of violations in working conditions but required it to pay a two-million-euro fine toward “victims of exploitation.”
As the legal process unfolds, the case highlights growing concerns about labor practices within the global fashion industry. With increasing scrutiny on supply chains and subcontracting arrangements, companies like Loro Piana face mounting pressure to ensure ethical and transparent operations. The outcome of this case could set a precedent for how fashion brands are held accountable for the actions of their subcontractors.
