MILAN, April 17 (Reuters) - Italian cashmere brand Loro Piana, part of French luxury group LVMH, said on Friday that an Italian court had ended early the special administration imposed on the company
Italy lifts judicial oversight on Loro Piana over supply chain abuses
Judicial Administration Lifted for Loro Piana Amid Supply Chain Reforms
MILAN, April 17 (Reuters) - Italian cashmere brand Loro Piana, part of French luxury group LVMH, said on Friday that an Italian court had lifted early the judicial administration forced on the company over alleged labour abuse in its supply chain.
Background of Judicial Administration
Loro Piana was subjected last July to court monitoring for 12 months after investigators found that part of the company's production had been indirectly subcontracted to Chinese-owned firms accused of exploiting workers.
Industry-Wide Labour Malpractice Investigations
The cashmere group was one of several Italian luxury brands embroiled in labour malpractice investigations, including Dior, Valentino and Giorgio Armani, tainting the reputation of the "Made in Italy" fashion industry.
Loro Piana's Response and Reforms
Supplier Audits and Relationship Terminations
On Friday, Loro Piana said it had carried out 2,400 audits across its supplier network since 2024, and had cut ties with more than 100 suppliers and sub-suppliers that failed to meet the company's "zero-tolerance" standards.
Strengthening Oversight Procedures
Use of External Auditors and On-site Inspections
During the judicial monitoring period, Loro Piana said it strengthened supplier oversight procedures, including through greater use of independent external auditors and more frequent on-site inspections.
Leadership and Commitment to Governance
"The steps we have taken in recent months reflect a rigorous and disciplined approach to strengthening governance and oversight across our value chain," Loro Piana CEO Frederic Arnault said. Arnault, the son of LVMH chairman and Chief Executive Bernard Arnault, was appointed CEO of the cashmere group in June last year.
(Reporting by Elisa Anzolin, editing by Gavin Jones, Alvise Armellini and Susan Fenton)
