Italy moves to safeguard fashion sector reputation after labour scandals
Cashmere company Loro Piana, controlled by French luxury group LVMH (LVMH.PA), opens new tab, was put under judicial administration last week after prosecutors uncovered evidence of worker abuses in its supply chain.
The label was the fifth high-end brand to undergo such court monitoring in Italy since early 2024.
"We cannot allow the illicit behaviour of a few to compromise the reputation of the entire sector, penalising many virtuous companies and, consequently, our Made in Italy brand, which is a symbol of excellence and quality," minister Adolfo Urso told fashion trade bodies during a meeting, according to a source.
The ministry is working on a measure to certify the sustainability and legality of companies in the supply chain in advance, he added, so that brands do not have to answer for the conduct of their suppliers or subcontractors.
Units of fashion brands Valentino, Dior, Armani and Italian handbag company Alviero Martini were previously placed under administration in Italy for similar alleged worker exploitation.
In the case of Loro Piana, the Court of Milan found it "culpably failed" to adequately oversee its suppliers in order to pursue higher profits, according to the ruling.
Prosecutors in that case said the violation of rules among fashion companies in Italy was "a generalised and consolidated manufacturing method".
Italy is home to thousands of small manufacturers that make up 50%-55% of global luxury goods production, consultancy Bain has calculated.
Italian legal and political authorities, fashion industry bodies and trade unions signed an action plan in May to fight worker exploitation in the apparel and accessories supply chain, after prosecutors uncovered widespread abuse.
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