Why LVMH-owned Loro Piana Was Put Under Court Administration

Loro Piana, the luxury Italian cashmere brand owned by LVMH, was put under court-mandated judicial administration in July 2025 for one year. This extraordinary measure was imposed due to significant findings of worker exploitation within the company’s supply chain. Here’s what happened and what lessons this holds for others in the fashion industry.

What Prompted the Court Action?

Exploitation Through Subcontractors: Italian authorities found that Loro Piana’s supply chain involved subcontracting to workshops in Italy (primarily Chinese-operated), where mainly undocumented migrants were forced to work up to 90 hours a week, earning less than $5/hour and living in unsanitary, factory-based conditions. Failed Oversight: Loro Piana did not contract these workshops directly, but went through intermediaries—“shell” companies without actual manufacturing capacity—who then farmed out the work. The court found Loro Piana had “culpably failed” to oversee its supply chain. No Criminal Charges for Loro Piana: The providers themselves are being investigated…