Loro Piana is under court administration for allegedly enabling worker exploitation via subcontractors. The carabinieri police reported that the company did not implement measures to verify labor conditions. Production was outsourced to an unqualified firm, which further subcontracted work to workshops employing exploited Chinese workers. The Milan court deemed Loro Piana as having negligently facilitated this exploitation. The administration aims to prevent criminal infiltration into healthy businesses. Following the investigation, Loro Piana terminated its contract with the supplier and expressed commitment to human rights and regulatory compliance.
The judges of the Milan court found that Loro Piana 'negligently facilitated' the exploitation, according to the police statement. The court however stressed that the one-year administration was intended as 'preventative', not a punishment.
An investigation found the fashion house entrusted the production of its clothing to a company without production facilities. That firm outsourced the work to another company, which in turn used workshops in Italy employing Chinese workers to save costs.
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