The brand conducted 2,400 audits across its supply network
Loro Piana has exited judicial administration ahead of schedule, marking a turning point in the luxury house’s response to ongoing scrutiny around supply chain oversight in Italy.
The LVMH-owned brand confirmed that the court-mandated supervision, imposed in July 2025 amid allegations of negligence in monitoring subcontractors, has been lifted early following what Milan judges described as a “virtuous path.” Originally set to last 12 months, the measure was revoked after the company demonstrated significant progress in strengthening governance, auditing procedures, and compliance standards.
Chief executive officer Frédéric Arnault framed the development as the result of a systematic overhaul of internal controls. The company has conducted approximately 2,400 audits across its supply chain since 2024 and severed ties with around 100 suppliers and subcontractors that failed to meet its criteria. It has also reinforced its internal teams dedicated to compliance while expanding external audit support.
The judicial administration stemmed from a broader investigation launched by Milan prosecutors into alleged labor abuses and sweatshop conditions within subcontracted manufacturing networks. Authorities argued that Loro Piana had not exercised sufficient oversight, prompting court intervention to enforce stricter monitoring and corrective measures.
In its defense, the brand maintained that certain subcontractors had operated without disclosure, violating contractual obligations. It responded by terminating relationships with implicated partners within 24 hours and committing to full cooperation with authorities. The company reiterated its adherence to its Code of Conduct and its stance against illegal labor practices.
The case forms part of a wider reckoning within Italy’s luxury sector, where multiple high-profile brands — including Dior, Valentino, and Giorgio Armani — have faced similar investigations and temporary judicial oversight. While several of these cases have now been resolved, the wave of scrutiny has exposed systemic challenges in managing complex, multi-tiered supply chains.
Industry response has been mixed. LVMH executives have acknowledged that the issue extends beyond individual brands, pointing to structural challenges across the Italian manufacturing ecosystem. At the same time, industry bodies such as Confindustria Moda have pushed back against broad generalizations, emphasizing the need for collaborative solutions rather than reputational damage to the sector as a whole.
For Loro Piana, the early conclusion of judicial administration signals both regulatory approval of its corrective actions and a broader attempt to reposition itself as a model for responsible supply chain governance. The company has indicated it will continue to evolve its oversight systems, positioning compliance and transparency as central to its long-term operations.