Overview

• On July 14, a Milan court ordered a one-year judicial administration for Loro Piana Spa after finding the company “culpably failed” to monitor its subcontractors.
• Investigators uncovered that the brand indirectly subcontracted production to firms without facilities, which then employed Chinese workers in workshops with wage, safety and working-hour violations.
• Authorities imposed more than €181,000 in fines, €60,000 in administrative penalties and suspended two Chinese-run workshops for serious safety breaches and use of undeclared labor.
• Loro Piana severed ties with the implicated supplier within 24 hours of learning about undisclosed subcontractors and has pledged to strengthen audits and compliance measures.
• This is the fifth luxury label subject to Milan’s preventive oversight since December 2023, following cases against Valentino, Dior, Armani and Alviero Martini, with possible early lifting of sanctions upon compliance.