LVMH’s Loro Piana Faces Court Oversight in Italy Labor Probe

An employee works on the weaving process of cashmere wool at Loro Piana SpA's plant in Roccapietra, Italy.

Photographer: Alessia Pierdomenico/Bloomberg

A Milan court placed Italian luxury label Loro Piana SpA under judicial oversight for one year, saying the LVMH-owned label famous for its cashmere clothing failed to stop subcontractors from exploiting migrant workers.

In some Italian factories, working hours largely exceeded the 8-hour legal standard, employees slept on shop floors and were paid a fraction of Italy’s legal minimum, prosecutors said, according to the ruling seen by Bloomberg News. The court also said that Loro Piana omitted due-diligence checks.