Overview

• On July 14, 2025, the Milan Court ordered a one-year judicial administration of Loro Piana Spa, citing its failure to monitor suppliers that exploited undocumented workers.
• Investigators from the Carabinieri labor protection unit found Chinese-run workshops forcing employees to toil up to 90 hours a week for €4 an hour in unsafe, unsanitary dormitories.
• The court imposed fines exceeding €181,000 and administrative penalties of around €60,000 and suspended two workshops for serious safety violations and undeclared labor.
• Loro Piana terminated ties with the implicated supplier within 24 hours of uncovering unauthorized subcontractors and pledged to enhance audits and human rights due diligence.
• Judicial oversight can be lifted early if the company demonstrates full compliance with legal requirements for transparent and ethical supply chain practices.