Quiet Luxury Brand Loro Piana Placed Under Court Administration for Alleged Labor Exploitation

Luxury fashion brand Loro Piana has found itself in the midst of controversy, with allegations of labour exploitation surfacing. The Italian luxury brand has been accused of subjecting its employees to gruelling 90-hour work weeks, with workers reportedly having to sleep in the factory premises. Shockingly, these workers were allegedly paid as little as €4 an hour to create coats that are then sold for prices ranging from €3,000 to over €5,000.

In response to these disturbing claims, local authorities have intervened, placing Loro Piana under judicial administration. This move comes after an investigation was launched into the alleged employee abuse. Founded in 1924, Loro Piana is renowned for its high-end cashmere pieces and is part of the LVMH Moët Hennessy Louis Vuitton SE conglomerate. The French multinational company specialises in luxury goods and is headquartered in Paris.

According to a 26-page ruling obtained by Reuters, Loro Piana Spa will be under court monitoring for a year as a result of the claims dating back to 2023. In a statement provided to PEOPLE, a representative for the brand acknowledged the notification received from the Court of Milan’s Preventive Measure Section. The statement addressed the labour practices carried out by undisclosed subcontractors of one of its suppliers, emphasising that the supplier failed to inform Loro Piana of these sub-contractors as required by legal and contractual obligations.

Loro Piana stated that upon becoming aware of the situation on May 20th, swift action was taken to terminate all relations with the concerned supplier within 24 hours. The brand has firmly condemned any illegal practices and has vowed to ensure that its suppliers adhere to its Code of Conduct. In light of the allegations, Loro Piana has committed to enhancing its control and audit activities to prevent such incidents from occurring in the future.

The company has refuted the cost figures reported, asserting that they do not accurately represent the amounts paid to suppliers. Loro Piana has expressed its willingness to collaborate with relevant authorities and provide full support for any further investigations into the matter. It is essential for luxury brands like Loro Piana to uphold ethical standards and ensure fair treatment of all individuals involved in their supply chain.

Critically, Loro Piana is not the first luxury brand in Italy to face allegations of worker abuse within its supply chain. The company joins a list of high-end brands that have been placed under judicial administration in connection to similar labour exploitation claims. The fashion industry, known for its glamour and opulence, must also take responsibility for the working conditions and treatment of those behind the scenes who contribute to the creation of luxury products.

It is deeply concerning to learn about the reported conditions endured by undocumented Chinese employees allegedly exploited by Loro Piana. The accusations of long working hours, insufficient wages, and substandard living conditions expose the darker side of the fashion industry. It is crucial for companies to conduct thorough due diligence on their suppliers and ensure compliance with labour laws to prevent such exploitation from persisting.

As investigations continue and the spotlight remains on Loro Piana, it serves as a stark reminder of the importance of transparency and accountability in the fashion industry. Consumers are increasingly demanding ethical practices and sustainable production methods from brands, signalling a shift towards a more responsible and conscientious approach to luxury fashion. The outcome of this situation will undoubtedly shape how Loro Piana and other luxury brands navigate the complex landscape of supply chain ethics in the future.