Loro Piana placed under court supervision for labour exploitation in Italian supply chain

On 14 July 2025, the Milan Tribunal placed Loro Piana under judicial administration for one year, following evidence of labour exploitation in its Italian supply chain. The court found that the ultra-luxury cashmere brand, owned by LVMH, had subcontracted production through a network of front companies to unauthorised workshops in Lombardy where migrant workers — some undocumented — were paid as little as €4 per hour for shifts of up to 13 hours, often in unsafe conditions lacking fire exits and proper machinery.

The investigation stemmed from a 2024 police inspection that uncovered makeshift dormitories, dangerous machinery, and widespread safety violations at factories linked to Loro Piana's official supplier, Evergreen Fashion Group Srl. The court's 26-page ruling, reviewed by Glossy, stated that Loro Piana 'could not have been unaware' of the conditions. Internal evidence — emails, tech packs, size charts, and product samples — confirmed that items produced in these factories were destined for Loro Piana. The brand was fined over €240,000 for the violations.

Loro Piana acknowledged the court's notification, claiming it was unaware of the unauthorised subcontractors until 20 May 2025, and said it ended its relationship with the supplier within 24 hours. The brand condemned the practices and pledged full cooperation with authorities. The court-appointed commissioner, Micaela Cecca, was tasked with verifying improvements in supply chain oversight, with the possibility of early release if conditions are met — as occurred with Dior, Armani, and Valentino.

The case was the fifth time a luxury brand had been placed under judicial administration in Italy for labour abuses in its supply chain, following Dior (October 2023), Armani (January 2024), Valentino (April 2024), and another case. The pattern exposed a systemic gap in the 'Made in Italy' luxury model: brands outsourced production through intermediaries that shielded them from direct responsibility, while their marketing continued to emphasise craftsmanship and ethical sourcing.