Loro Piana Under Judicial Oversight Amid Labor Exploitation Allegations
Petitepaulina – Loro Piana, the Italian luxury brand linked to “old money” fashion, is now under court supervision in Milan for one year. The decision came after allegations of illegal subcontracting and unsafe working conditions.
Illegal Subcontractors Spark Legal Trouble
Court documents reveal Loro Piana, part of the LVMH group, failed to monitor its supply chain properly. One subcontractor was tied to a Chinese-owned workshop that reportedly exploited workers in Italy.
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Profit Over Compliance Raises Concerns
Though not criminally charged, Loro Piana was found negligent in monitoring suppliers. The brand prioritized profits over legal compliance, especially in protecting labor rights.
Fifth Luxury Brand Under Court Watch
Since 2023, Milan courts have placed five luxury brands under legal supervision. These include Dior, Armani, and Valentino. Some exited early after showing progress in ethical reforms.
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External Administrator Assigned for Compliance
A court-appointed administrator will oversee Loro Piana for 12 months. If the company improves fast, the supervision period may be reduced.
Widespread Exploitation in Fashion Supply Chains
Authorities say this is part of a larger issue. Thousands of small and mid-size suppliers across Italy engage in similar labor violations.
Industry Promises Ignored, Says Court
A joint agreement in May 2025 aimed to stop worker exploitation. However, Loro Piana reportedly made no real changes to its supply chain.
LVMH and Loro Piana Stay Silent
Both Loro Piana and its parent company, LVMH, have not released any statements. The silence increases scrutiny on LVMH’s internal controls.
ESG Issues Now Worry Investors
Investors are focusing more on ESG. Poor labor conditions and hidden practices are making Italy’s fashion industry a regulatory concern.
Legal Trouble Amid Strong Revenue
Despite legal issues, LVMH earned €12.6 billion in 2024 and €20.3 billion in Q1 2025. Still, it faces slowing demand and growing legal pressure.
