Loro Piana under judicial administration for labour exploitation

The Court of Milan has placed Loro Piana, owned by the LVMH group, under receivership for one year. This decision follows the physical assault of a migrant worker in a subcontracted workshop, who was claiming unpaid wages. The case has brought to light exploitative working conditions affecting both documented and undocumented workers in the production line of one of Europe’s most emblematic luxury brands.

The incident occurred in a jacket workshop located northwest of Milan. According to reports by Business of Fashion, the workshop, which makes cashmere garments for Loro Piana, employed ten Chinese migrant workers. Of these, five did not have legal documentation. The employees worked up to 90 hours a week, seven days a week, for only 4 euros an hour. They were also living in illegal conditions within the workshop itself.

Carabineros arrested the owner of the workshop and closed the premises after an operation. The investigation also covered two intermediary companies and three other workshops, all linked to the same subcontracting scheme. In total, half of the workers involved were found to be without official registration.

In an official statement, Loro Piana claimed to have received notification from the Milan Court regarding labour practices carried out by unauthorised subcontractors. The company stated that its supplier did not inform it of the existence of these subcontractors, and that it proceeded to terminate all business relations with the supplier within 24 hours of being notified on 20 May.

Loro Piana also stated that it ‘strongly condemns any illegal practices and reaffirms its unwavering commitment to upholding human rights and complying with all applicable regulations throughout its supply chain’.

The Loro Piana case is not an isolated incident. In recent months, the same court in Milan placed other luxury houses such as Armani, Dior and Valentino under judicial protection. Also after labour abuses in their supply chain were revealed.

Loro Piana has already faced criticism for underpaying raw material-producing communities. In 2024, a report exposed that these communities received less than $300 for wool that is then transformed into garments worth up to $9,000.