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A court in Milan placed Loro Piana under the judicial administration for the subcontractors of production to suppliers who are reportedly exploited employees, making the LVMH property of Cashmere brand the newest fashion house that is entangled in a series of investigations into violations of labor rights.
The court said that Loro Piana had handed over the production of clothing, including jackets, to Evergreen Fashion Group, owned by a Chinese company.
“The production of such clothing was carried out in a context of labor exploitation,” said the ruling seen by the Financial Times.
Loro Piana was placed in a one -year court administration to tackle the shortages in her supply chain, the ruling shows. The sanction means that a manager appointed by the court will supervise the activities of the brand.
The brand is not under punishable investigation and the order is canceled if the company meets legal requirements before the Deadline of 12 months given by the court.
Loro Piana said on Monday evening: “In violation of his legal and contractual obligations, the supplier Loro Piana did not inform about the existence of these subcontractors. Loro Piana was informed on 20 May and, as a result, all relations with the supplier concerned ended in less than 24 hours.
“Loro Piana strongly condemns all illegal practices and confirms her non -repellent dedication to maintain human rights and compliance with all applicable regulations in the supply chain.”
Evergreen could not be achieved for comment.
Loro Piana was purchased by LVMH, the world’s largest luxury conglomerate, in 2013. Frédéric Arnault, son of LVMH founder Bernard Arnault, was appointed Chief Executive of Milan-based fashion house.
It is the fifth fashion company that has been placed under the court administration in Italy in Italy in the last 18 months, in a scandal that has affected the image of the luxury industry of the country.
Milanese public prosecutors are investigating the supply chain of the industry a few years after media investigations have discovered several cases of work error at various companies that have established Chinese owners in Lombardy and Tuscany.
Luxury brands have subdivided the production to meet an increased demand during the luxury boom of the Pandemic era.
LVMH’s Dior, the Italian Armani and Alviero Martini have collected the limitations on them before the 12 -month deadline.
Valentino, co-ownership of the other luxury conglomerate Kering of France, was also subject to a similar order in May. It said It would collaborate with the authorities to better understand what the measures led.
