Italian cashmere label Loro Piana, celebrated globally as the epitome of “quiet luxury,” has been placed under judicial administration by a Milan court for one year following revelations of severe labor exploitation in its subcontracted production facilities.
Investigators discovered that hundreds of Loro Piana garments were being made in unregistered, Chinese‑owned workshops around Milan. There, undocumented workers endured up to 90-hour workweeks, were paid as little as €4 an hour, and slept in unsafe dormitory-style spaces inside factories. This was described by prosecutors as “borderline inhuman,” while crafting coats sold for anywhere between €1,000 and €3,000.
The factories tied to these abuses were linked to two intermediary firms: Evergreen Fashion Group and Sor-Man snc, which lacked genuine manufacturing capacity and subcontracted work without oversight. One scandalous turn of events included a worker being beaten by his employer for demanding overdue pay.
Although Loro Piana is not facing criminal charges, the court found that the company “culpably failed” to monitor its suppliers, allowing exploitative labor to occur unchecked. This is considered a structural failure that is based on cost-focused subcontracting rather than intentional wrongdoing, but no less devastating in impact.
A court-appointed administrator will oversee Loro Piana’s supply chain and audit processes for up to one year, with the possibility of early termination if the company meets reform targets. Similar measures helped undo oversight at Dior and Valentino after they implemented changes.
After being notified in May 2025 about the subcontracting scheme, Loro Piana claims to have immediately terminated its relationship with the implicated supplier. It issued a public statement condemning any illegal labor, pledging cooperation with authorities, and announcing new audits and supply chain controls in line with its Code of Conduct.
Despite these steps, critics note that this case undermines the brand’s previously strong narrative around ethical sourcing and traceability in luxury materials.