Loro Piana Under Judicial Watch: Italy’s Latest Luxury Labor Crackdown
Background & Ruling
A Milan court has ordered Loro Piana, the prestigious cashmere label owned by LVMH, into one‑year judicial administration after uncovering severe labor exploitation in its subcontracted supply chain . The brand joins Dior, Armani, Valentino, and Alviero Martini in facing legal oversight over supply‑chain practices.
The Allegations
Investigators found that Loro Piana subcontracted through two “front” firms to Chinese‑owned workshops in Italy where workers—including undocumented migrants—were exploited. Reported violations include up to 90-hour work‑weeks, underpayment (around €4/hr), forced on‑site residence, lack of contracts, and even physical abuse when workers pushed for unpaid wages .
Corporate Responsibility Failures
Milan’s court criticized Loro Piana for its “culpable failure” to effectively monitor subcontractors in pursuit of profit . Despite industry-wide pledges and previous brand scandals, similar abuses persisted within the same luxury ecosystem .
Administrative Oversight
An independent administrator has been appointed to ensure Loro Piana obeys labor laws and strengthens supply‑chain audits. The administration can be lifted early upon demonstrable reforms, as occurred previously with Dior, Armani, and Alviero Martini .
Broader Implications
Italy’s luxury sector—responsible for over half of global high-end goods—faces increasing scrutiny. But recurrent violations highlight systemic audit failures: announced inspections, limited monitoring, and unscrupulous subcontracting remain common .
What to Watch
- Reform pace: Will Loro Piana implement meaningful supply‑chain transparency and worker protections?
- Regulatory pressure: Will authorities expand oversight to other luxury labels?
- Brand risk: Damage control and reform could influence consumer perception in ethical markets.
Bottom Line
Judicial control over Loro Piana highlights that luxury pedigree offers no immunity. In a sector built on craftsmanship and heritage, exploitation scandals can tarnish prestige—and legal oversight is becoming the price of negligence.