Overview
- A Milan court ordered Loro Piana into special judicial administration for one year to enforce corrective measures and compliance controls.
- Prosecutors found the luxury house negligently failed to oversee its outsourcing, allowing orders to cascade to firms without capacity and finally to Chinese-run workshops.
- Carabinieri labor inspectors uncovered undocumented workers toiling around the clock without safety protections and living in illegal dormitories near Milan.
- Loro Piana said it cut ties with unauthorized subcontractors within 24 hours of learning of their involvement and pledged full cooperation and strengthened monitoring.
- Criminal probes now target the operators of implicated subcontractors while the court-appointed overseer implements stricter supply chain oversight.