Milan (Reuters) – An Italian court placed on Monday from judicial administration the Italian company Loro Piana, owned by LVMH, to have indirectly subcontracted its production to Chinese companies accused of operating workers.
The Milan court ordered a one -year administration for Loro Piana Spa, according to a 26 -page judgment examined by Reuters.
The administration implemented will be lifted earlier if Loro Piana puts his practices in accordance with legal requirements.
The court said that the luxury cashmere company had “failed in a guilty” for its obligation to properly supervise its suppliers in order to make greater benefits.
Loro Piana could not be joined immediately for a comment.
LVMH acquired 80% of Loro Piana in July 2013, leaving 20% to the Italian family who founded the company.
The Italian luxury sector is affected by a series of cases linked to abusive work in the supply chain.
Loro Piana is the fifth fashion company to be targeted by the same Milanese court for similar work issues since December 2023.
Valentino, an Italian Dior unit of LVMH, Armani and Alviero Martini, had also been targeted by the court.
A judicial administration is also always imposed in Valentino.
(Emilio Parodi report, Etienne Breban, edited by Augustin Turpin)
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