Overview

• A Milan court imposed a one-year judicial administration on July 14 after finding Loro Piana had “culpably failed” to oversee subcontractors accused of labor exploitation.
• Carabinieri inspections uncovered Chinese-owned workshops where undocumented workers endured up to 90-hour weeks for €4 an hour in unsafe, unsanitary dormitories.
• Loro Piana terminated its relationship with the unnamed supplier within 24 hours of learning of the abuses and condemned any illegal practices.
• The court suspended operations at two workshops, levied more than €181,000 in fines and around €60,000 in administrative penalties for safety violations and undeclared labor.
• The administration may be lifted early if the cashmere brand demonstrates strengthened supply-chain controls and full cooperation under court monitoring.