Finance
Italian Court Lifts Controls Placed on Loro Piana Over Labour Practices
Published by Global Banking & Finance Review®
Posted on April 17, 2026
2 min readLast updated: April 17, 2026
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A Milan court has ended early the special judicial administration imposed on Loro Piana by virtue of improving its oversight of suppliers and supply‐chain practices.
Italy lifts judicial oversight on Loro Piana over supply chain abuses
Judicial Administration Lifted for Loro Piana Amid Supply Chain Reforms
MILAN, April 17 (Reuters) - Italian cashmere brand Loro Piana, part of French luxury group LVMH, said on Friday that an Italian court had lifted early the judicial administration forced on the company over alleged labour abuse in its supply chain.
Background of Judicial Administration
Loro Piana was subjected last July to court monitoring for 12 months after investigators found that part of the company's production had been indirectly subcontracted to Chinese-owned firms accused of exploiting workers.
Industry-Wide Labour Malpractice Investigations
The cashmere group was one of several Italian luxury brands embroiled in labour malpractice investigations, including Dior, Valentino and Giorgio Armani, tainting the reputation of the "Made in Italy" fashion industry.
Loro Piana's Response and Reforms
Supplier Audits and Relationship Terminations
On Friday, Loro Piana said it had carried out 2,400 audits across its supplier network since 2024, and had cut ties with more than 100 suppliers and sub-suppliers that failed to meet the company's "zero-tolerance" standards.
Strengthening Oversight Procedures
Use of External Auditors and On-site Inspections
During the judicial monitoring period, Loro Piana said it strengthened supplier oversight procedures, including through greater use of independent external auditors and more frequent on-site inspections.
Leadership and Commitment to Governance
"The steps we have taken in recent months reflect a rigorous and disciplined approach to strengthening governance and oversight across our value chain," Loro Piana CEO Frederic Arnault said. Arnault, the son of LVMH chairman and Chief Executive Bernard Arnault, was appointed CEO of the cashmere group in June last year.
(Reporting by Elisa Anzolin, editing by Gavin Jones, Alvise Armellini and Susan Fenton)
Key Takeaways
- •Loro Piana, owned by LVMH, was placed under one‑year court administration in July 2025 due to subcontracting lapses and alleged worker exploitation in Italian‑based Chinese workshops (business-humanrights.org).
- •The early lifting signals the brand implemented corrective controls swiftly, following precedents set by Armani and Dior, reinforcing oversight and auditing mechanisms (yahoo.com).
- •This action underscores growing Italian judicial pressure on luxury brands to ensure ethical supply chain practices amid broader industry crackdown on labor abuses (thefashionlaw.com)
References
Frequently Asked Questions about Italian court lifts controls placed on Loro Piana over labour practices
1Why was Loro Piana placed under special administration?
Loro Piana was placed under judicial administration due to concerns over indirect subcontracting to firms accused of worker exploitation.
2What decision did the Italian court make regarding Loro Piana?
The Italian court lifted the special administration earlier than planned, ending judicial controls on Loro Piana.
3Which company owns Loro Piana?
Loro Piana is part of the French luxury group LVMH.
4When was Loro Piana placed under judicial administration?
Loro Piana was placed under judicial administration in July of the previous year.
5What were the allegations against Loro Piana’s supply chain?
The company was accused of indirectly subcontracting production to Chinese-owned firms involved in worker exploitation.