Another judicial administration case for luxury leathergoods in Italy
According to a report by Reuters, a subsidiary of LVMH in Italy responsible for manufacturing Dior-branded handbags, has been placed under judicial administration due to allegations of subcontracting to firms mistreating workers.
This decision by the Milan court is the third of its kind this year, with similar actions taken against a Giorgio Armani -owned company in April for inadequate supplier oversight.
An investigation found that four small suppliers employing 32 staff, including illegal immigrants and undocumented workers, were involved. Inspections revealed substandard living and working conditions for these workers. LVMH representatives declined to comment on the court's decision.
Manufactures Dior SRL, fully owned by Christian Dior Italia SRL, will be under judicial administration for one year, although it will continue operations.
Dior allegedly failed to ensure proper audits and checks on its suppliers. While the subcontracting firms' owners are under investigation for worker exploitation, Dior itself is not facing criminal charges.
