Gangmastering among suppliers: The Milan Court orders the judicial administration of Loro Piana.

The Milan Court has placed Loro Piana , one of the leading luxury fashion brands belonging to the LVMH group, headed by Antoine Arnault , under judicial administration for one year. The decision follows an investigation conducted by the Milan Public Prosecutor's Office, which found serious issues in the company's supply chain, including instances of labor exploitation and gangmastering .

According to the reconstruction by the public prosecutor Paolo Storari , Loro Piana allegedly outsourced the production of garments, including cashmere jackets, to external suppliers, without effectively monitoring actual working conditions. The investigation, conducted by the Milan-based Group for the Protection of Labor , revealed a chain of subcontracting that led to the garments being produced in contexts of severe labor exploitation , in violation of regulations on safety, wages, and fundamental workers' rights.

The case directly involves two third-party companies: Evergreen , which received the contract from Loro Piana, and Sor-Man snc of Nova Milanese, a subcontractor. The latter, lacking adequate production capacity, allegedly delegated production to several factories run by Chinese citizens , where irregular and, in some cases, clandestine workers were employed in degrading conditions , working grueling shifts and without contractual protections. One of these factories was closed in May, and one of its owners was arrested.

In their ruling, the judges of the Prevention Measures section speak of "culpable facilitation of gangmastering" by Loro Piana, which allegedly failed to adequately monitor the technical capabilities of its contractors or conduct effective audits and inspections to verify actual working conditions along the supply chain.

The illicit system would have allowed for significant cost reductions , circumventing tax and social security obligations, and restricting workers' rights. All of this, according to the Court, led to profit maximization , knowingly fueling an opaque production model that failed to comply with standards of legality and social responsibility.

The Loro Piana case is part of a series of investigations the Milan Prosecutor's Office is conducting into some of the most renowned Italian and international fashion houses, including Valentino Bags, Armani Operations, and Dior. The aim is to shed light on the real conditions of outsourced production , especially in sectors where brand prestige coexists with the risk of exploitation along the supply chain.

The judicial administration's measure, which is not punitive but supportive and monitors , represents an intervention envisaged by the Anti-Mafia Code to facilitate a process of remediation and compliance. The company, although not accused of direct criminal offenses, is held liable for failing to prevent, through adequate governance and control tools, serious violations of workers' rights .

The measure also sends a clear signal to the entire luxury sector, calling for effective and transparent due diligence in the management of supply chains, in line with ESG principles and European regulations on human rights and corporate responsibility.