According to Italian daily Corriere della Sera and Reuters, a Milan court placed Loro Piana under judicial administration for one year as of the 14th of this month. Loro Piana is a high-end textile brand under the LVMH group.
Investigations revealed that Loro Piana outsourced the production of cashmere products to subcontractors, who then further subcontracted to Chinese-owned factories near Milan. These factories reportedly employed undocumented Asian workers, subjecting them to forced labor during nights, weekends, and holidays, in unsanitary and hazardous conditions.
Shockingly, while a cashmere jacket retails for 3,000 euros (approximately $3,200), the subcontractor received only 80 euros (about $87) per jacket. Known as the 'Uniqlo for billionaires,' Loro Piana has built a reputation for its premium cashmere materials and minimalist designs, but this labor exploitation scandal is expected to significantly damage its brand image.
The Milan court stated that Loro Piana was aware of the illegal activities during the subcontracting process and profited from them, holding the brand accountable. Consequently, the brand will be under direct court supervision for a year.
In a statement, Loro Piana explained, "We terminated the contract immediately upon discovering the supplier's illegal activities on May 20," and pledged to "strengthen human rights protection and legal accountability across the supply chain."
Loro Piana became part of the luxury textile sector after LVMH acquired an 80% stake in 2013. The current CEO, Frédéric Arnault, is the fourth son of LVMH chairman Bernard Arnault.
Meanwhile, Frédéric Arnault has been in the spotlight for his relationship with BLACKPINK's Lisa. The couple was first rumored to be dating after being spotted enjoying time together at a restaurant in Paris in July 2023.
They were later seen traveling with Arnault's family in Italy and sitting together at an airport lounge in Los Angeles. Recently, during Lisa's world tour concert in Seoul, Frédéric was also in South Korea, reportedly meeting with major department store brand representatives.