Italy: Another luxury brand hit by the courts

Loro Piana faces administration over labour abuses, spotlighting supply chain risks and growing legal accountability for top luxury brands in Italy. This is also the topic of our latest BEERG bytes podcast

The Key Points  Loro Piana, LVMH’s luxury cashmere brand, has been placed under judicial administration in Italy due to alleged labour abuses in its supply chain. The company is accused of failing to adequately supervise subcontractors, echoing recent actions against Valentino, Dior, Armani, and Alviero Martini.

Why This Matters  The case underscores a growing legal and reputational risk for luxury brands connected to labour exploitation among suppliers and subcontractors. Italian authorities are targeting top-line companies who fail to monitor their supply chains, challenging the image of "craftsmanship" in the luxury sector.

What Might Happen Next  Judicial administration could be lifted in a year, contingent on compliance, but the pressure on luxury and other brands to ensure ethical supply chains will intensify. More brands may be targeted if found lacking in oversight.

What You Should Be Doing  Listen to our most recent BEERG Bytes podcast on this very topic. Map and audit your entire supply chain, paying special attention to multi-tier subcontracting. Engage suppliers contractually to enforce labour standards and review your crisis response plan in case of negative press or legal investigations.