The King of Cashmere is under scrutiny by an Italian court. The luxury brand has committed serious abuses.

Loro Piana, an icon of Italian elegance and synonymous with cashmere perfection, is losing some of its luster. The brand has been placed under a year-long judicial review after an investigation revealed shocking abuses of workers in its supply chain.
Loro Piana , the Italian fashion house known for its exclusive fabrics, celebrated its centenary at the end of 2024 by transforming London's Harrods into a festive "Miracle Workshop." As recent reports show, real miracles also occurred in the actual workshops where the luxury brand's clothing was produced . However, these cannot be called magical.
Following a decision by a Milan court , the brand is being placed under one-year judicial review amid serious allegations of worker abuse in its supply chain . An investigation launched in May by the labor protection unit of the Italian Carabinieri revealed illegal employment , scandalous working conditions , and systemic exploitation—all under the banner of one of the world's most prestigious brands, owned by French giant LVMH .

An investigation was launched after a report of an attack on a worker at a workshop producing men's jackets for Loro Piana . As it turned out, this was just the tip of the iceberg. Workers were working up to 90 hours a week for less than $5 an hour , some sleeping in illegally constructed factory buildings. Ten workers were employed illegally, seven of them undocumented immigrants from China.
The problem? Loro Piana didn't formally enter into any agreements with this particular workshop – it used two intermediary companies that outsourced the production.
Italian fashion targeted by the secret services: not only Loro PianaThis is the fifth luxury brand to be placed under judicial review by the Italian justice system for labor abuse. Previously, Dior , Giorgio Armani , Valentino , and Alviero Martini have been under scrutiny. The common denominator? A fragmented subcontracting system where it's easy to lose control—and even easier to turn a blind eye.
Loro Piana's reputation damaged - brand accused of serious abuses"The luxury fashion supply chain today is incredibly complex—a network of manufacturers, subcontractors, and raw material suppliers. Tracking every link can be unrealistic, especially with the increasing pressure on delivery speed and volume," explains Alessandro Balossini Volpe, professor of marketing at Università Cattolica in Milan, as quoted by People.com.
Loro Piana, in a statement to Fox Business, said it was unaware of the subcontracting relationship.
“Loro Piana strongly condemns all illegal practices and is committed to respecting human rights throughout its entire supply chain,” the statement said.
The brand announced the strengthening of audits and controls at suppliers.
On the other hand, the owner of a jacket-making workshop admitted that he sewed 6,000–7,000 pieces annually, at a cost of $137–149 each . Meanwhile, Loro Piana cashmere jackets sell for over $4,000 . The brand emphasizes that these figures do not reflect the actual cost of production because they do not include materials, among other things.
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