Investigations by Milanese prosecutors have placed Loro Piana, the Italian cashmere brand favoured by celebrities and featured in Succession, under 12-month court administration over alleged worker exploitation. The probe, which began in 2023, found that some jackets and other clothing were subcontracted to illegal workshops on the outskirts of Milan, where workers—including undocumented migrants—were paid as little as €4 per hour for up to 90-hour weeks.
Loro Piana, owned by LVMH, said it terminated relations with the supplier within 24 hours of learning of the subcontractors. The brand is not under criminal investigation, and the order will be lifted if it meets legal requirements. However, this is the fifth fashion house placed under court monitoring in Italy since 2023, following similar actions against Armani, Dior, and Valentino.
In one case, Armani bags retailing for €1,800 were produced by a Chinese subcontractor for €93. Dior was sanctioned for paying as little as €53 for bags sold for over €2,000. Loro Piana jackets retailing for more than €3,000 were produced for as little as €118, though the company says these figures do not reflect the full cost of raw materials and fabrics.
Deborah Lucchetti of the Clean Clothes Campaign argues that the luxury industry's ethical image is an illusion. 'Luxury is based on cost reduction, profit maximisation, and opaque supply chains that often employ unprotected immigrant workers,' she said. The 'Made in Italy' label, once a hallmark of quality, is increasingly tainted by such revelations.
