NEED TO KNOW
- Loro Piana will be monitored by a court for a year after the luxury brand was accused of violating employee workplace rights
- The company claimed it was unaware of the violations and “terminated all relations with the concerned supplier in less than 24 hours”
- Loro Piana became the fifth high-end brand in Italy to be investigated for concerns over labor law
Loro Piana, a luxury brand known for its high-end cashmere pieces, is under fire after allegations of labor exploitation in the workplace caused local authorities to step in.
The Italian luxury fashion brand, headquartered in Milan, was placed under judicial administration on Monday, July 14, after an investigation was launched in response to alleged employee abuse, Reuters reported.
Founded in 1924, Loro Piana is part of LVMH Moët Hennessy Louis Vuitton SE, commonly known as LVMH, a French multinational holding company and conglomerate that specializes in luxury goods and has its headquarters in Paris.
Loro Piana Spa will undergo court monitoring for a year due to claims dating back to 2023, according to a 26-page ruling obtained by Reuters.
In a statement to PEOPLE, a rep for the brand said, “Loro Piana acknowledges the notification received from the Court of Milan’s Preventive Measure Section today regarding labor practices by undisclosed and unauthorized sub-contractors of one of its suppliers.”
“In breach of its legal and contractual obligations, the supplier did not inform Loro Piana of the existence of these sub-contractors,” the statement continued. “Loro Piana was made aware of this situation on May 20th, and, as a result, the Maison terminated all relations with the concerned supplier in less than 24 hours.”
Loro Piana said it “firmly condemns any illegal practices.”
It also promised to ensure suppliers comply with its Code of Conduct, adding, “In this perspective, Loro Piana has been constantly reviewing and will continue to strengthen its control and audit activities.”
“The reported cost figures are not representative of the amounts paid by Loro Piana to its supplier, nor do they consider the full value of all the elements, including, among others, raw materials and fabrics,” the statement concluded. “Loro Piana expresses its full willingness to cooperate with the relevant authorities on this matter and intends to provide the utmost support for any further investigations.”
The company is accused of forcing undocumented Chinese employees to work up to 90 hours per week, for low wages to cut costs while violating labor laws, per Reuters.
According to Reuters, Loro Piana said in a statement that a supplier was to blame for sub-contracting work without informing them, breaching legal and contractual obligations, and said it had ended work with the supplier as soon as it found out in May.
Loro Piana reportedly became the fifth high-end brand in Italy to be put under judicial administration tied to worker abuse allegations in supply chains.
Carabinieri police with Milan’s labor protection unit recently arrested a Chinese national for alleged labor exploitation and closed his workshop after police identified 10 Chinese laborers who were victims of exploitation, Reuters reported in May.
Of the 10, six of them were reportedly working without proper registration and five were illegal immigrants.
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Additionally, Carabinieri determined the staff were forced to work up to 90 hours a week, seven days a week, and were paid €4 ($4.50) an hour.
“The workers slept in rooms illegally set up inside the factory, which appeared to be a sort of dormitory with terrible hygiene and sanitary conditions,” read the statement.
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