Milanese court orders judicial administration for Loro Piana

In several cases of exploitation, Loro Piana is said to have taken no measures in her supply chain. Now the brand belonging to the luxury goods group LVMH is under judicial administration.

The court in Milan has ordered a one -year judicial administration for the company. The judges’ arrangement: Interior of the Preventive Department concerns an investigation by prosecutor Paolo Storari. The latter found that Loro Piana awarded the production of clothing, including jackets, externally. Their production is said to have been carried out under conditions of the “exploitation of workers”. Storari then had the judicial administration obtained.

According to the investigation by the Milan working group, the company was unable to prevent or contaminate cases of work exploitation in the production cycle. There were no suitable measures to check the actual working conditions and in particular not the technical skills of the contractors: monitored inside. In this way, the exploitation of the workers: on the inside, the Italian newspaper Ansa reports.

Loro Piana commissioned the external company Evergreen to produce certain clothing. Since Evergreen was unable to produce the desired items of clothing, it is said to have further assigned the order to SOR-Man SNC in Nova Milanese, which also did not have sufficient production capacities, according to the investigation.

“Illegal workers in unhealthy and dangerous work environments”

According to the reconstruction of the public prosecutor, the company is said to have contacted Chinese factories in order to reduce costs. These were closed by the military and one of the owners arrested in May. They are said to have dealt with “irregular and illegal workers in unhealthy and dangerous work environments” and “accommodated in illegal dormitories in order to gain workers at any time of the day and night and to expose them to work layers (…), who went far beyond the contractually agreed”, says the judge: Inside.

This system enabled profit maximization by causing the Chinese factory that actually manufactured the goods to reduce labor costs. This happened through the use of “undeclared work” and illegal workers. The health and safety regulations in the workplace were not observed and the national collective agreements in the industry in relation to wages, working hours, breaks and vacation were not observed.

For the court, the ANSA news agency writes, this “mechanism was negligent by Loro Piana. The company has not checked the actual entrepreneurial performance of the contractors: inside and subcontractors: inside (Sor -Man), to whom production was entrusted. check.”

Loro Piana has been managed as CEO by Frédéric Arnault, son of LVMH boss Bernard Arnault.

Fashionunited asked Loro Piana to comment.