Exploited labour: Loro Piana (LVMH) is no longer under judicial administration

Rome - Italian fashion house Loro Piana, owned by French luxury giant LVMH, announced on Friday the early termination of its judicial administration by the Court of Milan.

“Loro Piana acknowledges the early conclusion of the judicial administration proceedings by the Court of Milan, ahead of the originally scheduled 12-month period,” the Italian cashmere specialist stated in a press release.

According to the brand, the court highlighted the “virtuous approach undertaken and successfully completed” by Loro Piana. This “clearly demonstrates the company's commitment to continuing its efforts” to protect “the health and well-being of all workers, including indirect workers”.

In July 2025, Loro Piana was placed under judicial administration for having “negligently facilitated” the exploitation of workers at subcontractors. According to the court's decision, this was due to a “widespread lack of organisational models and a deficient internal audit system”.

According to investigators, the house, renowned for its cashmere designs, outsourced garment production to a company with no production capacity. This company, in turn, used another company, which then engaged workshops employing Chinese workers in Italy to reduce costs.

In these workshops, undocumented workers were exploited without regard for health and safety legislation, particularly concerning “wages; working hours; breaks and holidays,” the judges stated.

“As soon as the (judicial administration) measure was implemented, Loro Piana strengthened its internal functions dedicated to supplier supervision... The House has also implemented enhanced procedures for supplier integration and continuous monitoring,” the luxury house added.

The Italian brand stated that since 2024, it has conducted “2,400 audits”. These led it to cease collaboration “with more than 100 suppliers and subcontractors who did not meet the House's requirements”.

Other major luxury names have also been temporarily placed under judicial administration in similar cases since 2024. The measure has since been lifted for brands such as Dior (LVMH), an Armani subsidiary and, more recently, Valentino Bags Lab.

Loro Piana, an Italian brand specialising in cashmere, vicuña and extra-fine wool, was acquired by LVMH in 2013.

This article was translated to English using an AI tool.

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