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.

Loro Piana confirmed it was notified by the Milan court of the measures taken as part of the probe into labor practices and will fully cooperate with authorities, according to a statement released in the evening.

The company said its supplier only informed about the existence of sub-contractors on May 20. "The Maison terminated all relations with the concerned supplier in less than 24 hours,” it said.

A representative for Paris-based LVMH Moet Hennessy Louis Vuitton SE declined to comment.

The decision by prosecutors at the Milan Tribunal marks the fifth intervention into working conditions in the luxury-goods industry in recent years. Earlier actions involved a unit of Giorgio Armani and other companies such as Valentino Bags Lab, Manufactures Dior — another LVMH label — and handbag firm Alviero Martini.

The conditions cited by prosecutors shed light on the vast differences in wealth between people purchasing luxury goods and many of those employed in making them. A cashmere sweater from Loro Piana routinely costs €3,000 ($3,500) or more, depending on the type.

The violations were "negligently fueled by Loro Piana,” which failed to properly verify the roles its subcontractors, prosecutors said in the document.

Over a period of years, Loro Piana didn’t carry out effective inspections of its production chain or verify actual working conditions and work environments, they said.

Prosecutors identified several Chinese-managed sites making products including cashmere jackets. At least one plant manager was Chinese, while workers included Italian and Russian citizens.

In past investigations of this nature, an Armani unit was reportedly released from judicial oversight in February, while a probe into Dior ended in May without establishing any infringement.

LVMH paid about €2 billion in 2013 for 80% of Loro Piana, a family-owned Italian business known for its high-quality textiles, as the French conglomerate built the world’s biggest collection of luxury brands.