Following similar cases involving Armani Operations, Dior, and Valentino, and amidst a broader push for legality and transparency in the fashion supply chain, luxury brand Loro Piana has been placed under judicial administration by Milan’s Prevention Measures Court. The court appointed an external administrator for one year to oversee the company, owned by LVMH Moët Hennessy Louis Vuitton and renowned for its cashmere apparel.
The administrator will work alongside current management to address “toxic situations” identified by prosecutor Paolo Storari. Investigations by Milan’s Labor Protection Unit revealed that Loro Piana’s Vercelli-based yarn company failed to prevent or curb labor exploitation, instead allegedly facilitating it through negligence. The court order states Loro Piana neglected to properly vet its supply chain, verify the capabilities of contracted suppliers, monitor production methods, or adequately scrutinize subcontracting tiers.
Investigations found that Loro Piana, chaired by Antoine Arnault, outsourced production (including cashmere jackets) to Evergreen. Unable to meet demands, Evergreen subcontracted to Sor-Man snc of Nova Milanese, which also lacked sufficient capacity. To cut costs, Sor-Man allegedly engaged unauthorized Chinese workshops—later shut down by authorities, with one owner arrested in May. These workshops reportedly employed irregular, undocumented laborers in unsafe conditions, housing them in illegal dormitories. Workers faced shifts “far exceeding contractual limits” without breaks or holidays.
Prosecutors assert this system maximized profits. Each jacket retailed in Loro Piana stores for €1,000 to €3,000, representing a €1,000 to €2,000 markup. In contrast, Sor-Man’s legal representative stated Loro Piana paid €118 per jacket for orders over 100 units, while Sor-Man paid Chinese workshops €80-€86 per piece. Loro Piana now has one year to implement corrective measures.
In response, Loro Piana stated it “acknowledges” the court’s notification regarding “practices by undeclared, unauthorized sub-suppliers.” The company claimed its supplier violated legal and contractual obligations by concealing these subcontractors until May 20th, prompting Loro Piana to sever ties within 24 hours. The brand “firmly condemns any illegal practices,” reaffirms its commitment to human rights and supply chain compliance, and pledges full cooperation with authorities.
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