Loro Piana (LVMH) placed under judicial supervision for one year for illegal subcontracting
On Monday, the Milan court placed Italian luxury goods company Loro Piana, a subsidiary of the LVMH group, under judicial administration for using subcontractors deemed illegal. It is accused of outsourcing part of its production to Chinese companies involved in worker exploitation.
According to the ruling seen by Reuters, Loro Piana Spa will be placed under judicial supervision for one year, unless it complies with the rules in force more quickly. The court accused the cashmere specialist of "culpably failing" in its duty of care towards its suppliers in order to maximize profits.
The company has not yet responded to the decision.
LVMH acquired 80% of Loro Piana in July 2013, with the remaining stake remaining in the hands of the founding family.
This decision is part of a wave of checks targeting practices in the luxury sector in Italy. Since December 2023, the Milan court has taken similar measures against four other brands: Valentino, an Italian subsidiary of Dior (also owned by LVMH), as well as Armani and Alviero Martini.
LVMH Moët Hennessy Louis Vuitton SE is the world leader in luxury products. Net sales break down by family of products as follows:
- fashion and leather items (46.7%): brands such as Louis Vuitton, Christian Dior, Celine, Loewe, Kenzo, Givenchy, Fendi, Emilio Pucci, Marc Jacobs, Berluti, Loro Piana, etc.;
- watches and jewels (13%): Bulgari, TAG Heuer, Zenith, Hublot, Chaumet, Fred brands, Tiffany, etc.;
- perfumes and cosmetics products (10.1%): perfumes (Christian Dior, Guerlain, Loewe, Kenzo, Givenchy brands, etc.), makeup products (Make Up For Ever, Guerlain, Acqua di Parma, etc.), etc.;
- wines and spirits (6.6%): champagnes (Moët & Chandon, Dom Pérignon, Veuve Clicquot, Krug, Ruinart, Mercier, Château d'Yquem, Domaine du Clos des Lambrays, Château Cheval Blanc, Colgin Cellars, Hennessy, Glenmorangie, Ardbeg, Belvedere, Woodinville, Volcán de mi Tierra, Chandon, Cloudy Bay, Terrazas de los Andes brands, etc.; No. 1 worldwide), wines (Cape Mentelle, Château D'Yquem, etc.), cognacs (mainly Hennessy; No. 1 worldwide), whisky (mainly Glenmorangie), etc.;
The remaining net sales (23.6%) are from selective distribution through the Sephora, DFS, Miami Cruiseline chains and Le Bon Marché and La Samaritaine department stores.
At the end of 2025, products are marketed via a network of 6,283 outlets located throughout the world.
Net sales are distributed geographically as follows: France (8.3%), Europe (18%), Japan (7.9%), Asia (26.5%), the United States (25.6%) and other (13.7%).
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