A Milan Court has placed Loro Piana, the Italian cashmere brand of LVMH under one year judicial administration due to uncovered labor abuse within Italy’s luxury supply chain.
This makes it the fifth luxury brand facing similar sanctions such as Valentino, Dior, Armani, Alviero Martini since 2023.
Milan Courts ruled all brands “culpably failed to oversee its supply chain in pursuit of profits”.
Deeper investigation revealed migrant workers enduring 90 hour work weeks and earning 4 euros per hour, living in cramped factory dormitories. One worker was assaulted by a workshop owner after protesting unpaid wages.
Companies such as Loro Piana sub-contract through front companies that outsource to exploitative workshops and allow abuse to occur unchecked.
Source: Reuters
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