An Italian subsidiary of French luxury giant LVMH, which makes Dior brand handbags, was placed under judicial supervision on Monday after an investigation found it had outsourced work to Chinese-owned companies that abused workers.
This is the third such decision this year by the Milan court in charge of preventive measures, which in April appointed a commissioner to run a company owned by Giorgio Armani, over allegations that the fashion group “culpably failed to ” to adequately supervise its suppliers. Armani Group said at the time that it had always strived to “minimize abuses in the supply chain.”
According to a copy of Monday’s decision, the court said prosecutors alleged that the violation of the rules was not a one-off among fashion companies with production capacity in Italy, but systematic due to the need to pursue higher profits.
