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2mo ago

Milan Court Puts Loro Piana Under Judicial Administration Over Supply Chain Abuses

The administration follows revelations of a multi-tier subcontracting network that employed undocumented workers in hazardous conditions.

Das Logo und der Schriftzug der Marke Loro Piana ist am 25.03.2025 an der Fassade von einem Laden vom Unternehmen in der Maximilianstraße, einer exklusiven Einkaufsstraße in München (Bayern), zu sehen. Loro Piana S.p.A. ist ein Modeunternehmen aus Italien, das mehrheitlich im Besitz vom Luxusgüterhersteller LVMH ist. Viele internationale Einzelhandelsunternehmen haben in der Münchner Maximilianstraße eine Filiale.
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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.