Loro Piana: Why this LVMH company, directed by the son of Bernard Arnault, is placed under “judicial administration” in Italy

The complaint of a Chinese worker passed to tobacco by his boss because he demanded the payment of his wages of wages led, in May 2025, the establishment of an investigation in Italy. The person behind these legal proceedings made items from the Italian fashion house Loro Piana, owned by the French luxury giant LVMH.

According to the elements found on the spot by the investigators, the cashmere jackets of Loro Piana were made “For almost a hundred euros” the room, to finally be sold in the brand’s shops “Between 1,000 and 3,000 euros”details the specialized Fashion Network site.

Two months after this legal action, the company is pinned for having let its subcontractors operate Chinese workers. According to the verdict of the Milan court whose agency France-Presse obtained a copy on Monday, July 14, the fashion house was placed under “Judicial administration” in Italy. This one -year measure has a goal “Rather prevention than repression”details the same source.

“Reduce costs” and “maximize profits”

Unsurprisingly, Loro Piana alleges that he was not aware of the activities of his subcontractor. She claims that when the company was informed, on May 20, “She interrupted any relation to the supplier concerned in less than 24 hours”according to a statement received Monday evening at AFP. “Loro Piana firmly condemns any illegal practice and reiterates his continuous commitment to the protection of human rights”according to the same source.

Loro Piana is however accused of “Do not have implemented adequate measures to verify the actual working conditions (…) of subcontracting companies” by judges. The management of the company A “Easy by negligence” the exploitation of labor in subcontractors, considers Italian justice, according to which this problem is linked to a “Generalized deficiency of models of organizations and a faulty internal audit system”.

For their part, the investigators had considered that the negligence of the company in terms of adequate controls and effective audits, had made it possible to “Reduce costs and (de) maximize profits ». As a result, the luxury house would have entrusted the clothing to make a company without any productive capacity, which itself resorted to another company, which in turn called on workshops employing Chinese workers in Italy.

Workers were housed in “abusively built dormitories”

But that’s not all. The workers in an irregular situation were operated in Italy without respecting the legislation on health and safety in the workplace, in particular for “Salaries, working hours, breaks and holidays”also noted the investigators. The riflemen – gendarmes in Italy – found that workers were housed in “Dormers constructed improperly and under hygienic and health conditions below the ethical minimum”.

This legal action, however, endangers seven workers without stay titles, who were returned to the courts. In addition, two Chinese nationals owners of workshops were referred to justice for the exploitation of labor, as well as two Italians for violations of standards on health and safety in the workplace. Fines with a total amount of more than 181,000 euros and administrative sanctions of nearly 60,000 euros have also been inflicted. The activities of two Chinese workshops were also suspended “For serious security violations and use of black work”.

The luxury brand Dior, also belonging to LVMH, was sentenced, in May 2025, to pay two million euros in aid to “Victims of exploitation” As part of an investigation into the working conditions of its subcontractors by the Italian Competition Authority, which had however excluded any « infraction ».