A Milan court placed Italian luxury label Loro Piana SpA under judicial oversight for one year, saying the LVMH-owned label famous for its cashmere clothing failed to stop subcontractors from exploiting migrant workers.
In some Italian factories, working hours largely exceeded the 8-hour legal standard, employees slept on shop floors and were paid a fraction of Italy’s legal minimum, prosecutors said, according to the ruling. The court also said that Loro Piana omitted due-diligence checks.
The order means that a court will appoint a special administrator to oversee the company’s business and will be tasked to clean up the production process. Loro Piana isn’t under criminal investigation over the oversight failings, the court said.
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