Italian fashion house Loro Piana under court administration for ‘exploitation’

Italian fashion house Loro Piana, owned by French giant LVMH, has been placed under court administration for allegedly facilitating the exploitation of workers by subcontractors, police and a company source said on Monday.

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In a statement, the Italian police labour protection service said it had "executed a decree of judicial administration issued by the Milan court" against a company operating in the high fashion sector.

A source inside Loro Piana, which is known for its cashmere, confirmed the proceedings against it, but the company did not provide any official comment.

The police said the company had been deemed "incapable of preventing or curbing labour exploitation within the production cycle by failing to implement adequate measures to verify the actual working conditions or the technical capacities of its contractors".