Milan Court Implements Judicial Oversight for Loro Piana

## Recent Developments in Labor Exploitation Case Against Loro Piana

A troubling case surrounding labor exploitation has surfaced, this time involving the luxury brand Loro Piana, owned by LVMH. A Milan Court has mandated a one-year judicial administration for the company. Frédéric Arnault has been at the helm as CEO since June 10.

### Court Investigation Findings

According to the Italian news agency Ansa, the court’s action stems from an investigation led by prosecutor Paolo Storari. This investigation revealed that Loro Piana had outsourced the production of garments, including jackets, which were allegedly produced under conditions of “labor exploitation.” FashionUnited reached out to Loro Piana for a response, but as of now, there has been no statement issued.

### Insights from the Case

The labor exploitation allegations spotlight Loro Piana as part of a broader scrutiny by prosecutor Storari. Based on investigations by the Milan Labour Protection Group, the company failed to implement essential measures to verify working conditions throughout their production cycle. Furthermore, they neglected to monitor the capabilities of their contracted companies, inadvertently enabling labor exploitation.

The inquiry indicates that Loro Piana enlisted an external company, Evergreen, for garment production. This company, unable to meet production demands, allegedly subcontracted the work to Sor-Man snc of Nova Milanese, which also lacked sufficient production capacity. To save costs, the subcontractor resorted to Chinese factories, which had been shut down by military authorities, leading to the arrest of one factory owner in May.

### Working Conditions and Labor Rights Violations

The investigation pointed out severe irregularities, including workers being subjected to “irregular and clandestine labor” in hazardous conditions. Many were reportedly housed in abusive dormitories, making them available for labor at all hours and forcing them into shifts significantly exceeding contracted limits.

This exploitative system allegedly contributed to maximizing profits. The Chinese factory engaged in labor cost-cutting measures, failing to comply with essential health and safety regulations. The findings indicate that Loro Piana did not verify the legitimate operational capacity of its contracting companies, neglecting necessary inspections or audits to ensure compliance with labor standards.

As the situation unfolds, questions remain about the responsibilities of luxury brands in ensuring ethical labor practices throughout their supply chains. What are your thoughts on the accountability of high-end companies in such matters?