Why is Loro Piana placed under court administration? All about the quiet luxury brand's infractions

Luxury Italian brand Loro Piana, widely known for its high-end cashmere items and other lifestyle products, is currently under scrutiny following accusations of labor exploitation. As per Reuters, the Milan-based luxury brand has come under judicial administration after an investigation began, as the company was accused of exploiting its laborers in the workplace on July 14, 2025.

While Loro Piana is popular for its expert craftsmanship and products made of superior fabrics, which guarantee the best quality, it was acquired by LVMH (Louis Vuitton Moët Hennessy) in July 2013 and is currently run by Frederic Arnault, the son of LVMH chairman Bernard Arnault. Loro Piana's parent company, LVMH, is headquartered in Paris. It is a French conglomerate and a multinational holding company that primarily deals in various luxury products.

A 26-page ruling book obtained by Reuters states that the court will monitor the Italian luxury brand for a year because of earlier claims that date back to 2023. A representative for Loro Piana stated to People Magazine:

"Loro Piana acknowledges the notification received from the Court of Milan’s Preventive Measure Section today regarding labor practices by undisclosed and unauthorized sub-contractors of one of its suppliers."

The statement continued:

"In breach of its legal and contractual obligations, the supplier did not inform Loro Piana of the existence of these sub-contractors. Loro Piana was made aware of this situation on May 20th, and, as a result, the Maison terminated all relations with the concerned supplier in less than 24 hours."

While the brand claimed that it is against any kind of illegal practices, it also assured that the company will ensure that suppliers act as per its Code of Conduct. The statement added:

"In this perspective, Loro Piana has been constantly reviewing and will continue to strengthen its control and audit activities."

The statement concluded:

"The reported cost figures are not representative of the amounts paid by Loro Piana to its supplier, nor do they consider the full value of all the elements, including, among others, raw materials and fabrics. Loro Piana expresses its full willingness to cooperate with the relevant authorities on this matter and intends to provide the utmost support for any further investigations."

Loro Piana reportedly forced undocumented Chinese employees to work overtime

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As per Reuters, the Italian luxury brand allegedly forced Chinese employees, who were undocumented, to work overtime, which meant working up to 90 hours a week. In order to cut costs, the company paid them extremely low wages, breaching labor laws.

Loro Piana turned out to be the fifth Italian luxury brand that will face scrutiny and come under judicial administration related to labor exploitation accusations in its supply chains.

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