Luxury Brand Loro Piana Placed Under Court Supervision Amid Labor Exploitation Allegations

The iconic Italian cashmere label Loro Piana , part of the luxury conglomerate LVMH, has been placed under judicial administration for one year by a Milan court, following allegations of labor exploitation in its supply chain.

🔍 What happened?

According to the court, Loro Piana outsourced production of certain garments—including jackets—to a company called Evergreen Fashion Group, which has ties to China. Workers in these subcontracted facilities were allegedly subjected to harsh working conditions and paid below minimum wage.

🛑 Official consequences

• The court appointed a judicial administrator to oversee the company for at least 12 months.

• Loro Piana must ensure transparency and compliance across its entire production chain.

• While no criminal charges were filed, the brand remains under scrutiny and the ruling may be lifted if corrective actions are taken promptly.

📞 Loro Piana's response

The brand claimed it was unaware of the unauthorized subcontracting. Their contract explicitly prohibited it, and the company launched an internal investigation in May. Within 24 hours of discovering the issue, Loro Piana terminated the agreement with the supplier.

🌍 A broader pattern

This is the fifth major case in just 18 months involving a prominent Italian luxury brand under scrutiny for labor violations. Others include Dior, Armani, Valentino , and Alviero Martini —all linked to similar investigations.

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⭐ Reputation at risk

• Luxury under pressure : Even industry leaders like Loro Piana are facing serious ethical questions about the integrity of their supply chains.

• Increased oversight : This ruling suggests that Italian authorities are ramping up efforts to monitor labor conditions, even in elite sectors.

• Potential turning point : Judicial administration might serve as a wake-up call for lasting reform in luxury fashion production.