Overview

• The Milan court ordered a one-year judicial administration for Loro Piana Spa after concluding the company failed to prevent exploitation in its outsourced workshops.
• Inspectors found two Chinese-owned facilities using irregular migrant labour under unsafe conditions and excessive hours, leading to over €181,000 in fines and suspension of both sites.
• The probe stemmed from a May complaint by a Chinese worker alleging physical assault and unpaid wages, which triggered wider inspections by Italy’s labour protection service.
• Loro Piana terminated its supplier within 24 hours of discovering unauthorized subcontractors and has pledged full cooperation and strengthened audits across its supply chain.
• This is the fifth Italian luxury house to face such measures since December 2023, with early revocations granted previously to Armani, Dior and Alviero Martini after they adopted reforms.