Credit: Online Community
Loro Piana, the Italian luxury brand led by Frédéric Arnault , has been placed under court supervision over labor exploitation allegations. Arnault has been romantically linked to BLACKPINK’s Lisa .
An Italian court has ruled that luxury brand Loro Piana, owned by LVMH, allowed for serious labor exploitation by failing to properly supervise its suppliers.
With this ruling, Loro Piana becomes the fifth luxury brand in Italy to face court-ordered administrative oversight due to worker mistreatment in its supply chain. Dior, another LVMH brand, previously faced similar action.
As part of the decision, Loro Piana will be under judicial supervision for one year. However, the supervision could end early if the company takes corrective action and complies with labor regulations.
In a statement, Loro Piana denied any wrongdoing, saying its supplier breached both legal and contractual obligations by subcontracting work without the company’s knowledge. Loro Piana said it terminated its relationship with the supplier in May after learning of the issue.
The case began in May when Milan’s Labor Protection Department arrested the owner of a Chinese-run factory in a suburb northwest of Milan and shut the facility down. The investigation was launched after a factory worker reported being assaulted for demanding €10,000 (around $10,800) in unpaid wages. The victim required 45 days of medical treatment due to the severity of the injuries.
Authorities later discovered that ten Chinese workers, many of them undocumented, were working over 13 hours a day, seven days a week, for just €4 (around $4.30) an hour. The workers were also found living in illegally constructed quarters inside the factory.
The court found that Loro Piana had subcontracted production through two shell companies with no manufacturing capabilities. This led to the work being carried out in an illegal workshop. The court also said that Loro Piana failed to properly monitor its suppliers in pursuit of greater profits.
Loro Piana was acquired by LVMH in 2013, with the group taking an 80% stake in the brand. Frédéric Arnault, the youngest son of LVMH Chairman Bernard Arnault, took over as CEO of Loro Piana in March 2024. In South Korea, he has gained widespread public attention as the boyfriend of K-pop star Lisa.
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