The Art of Slowing Down
139: Luxury at Any Cost: LVMH’s Labor Scandals Keep Piling Up
“Once is happenstance. Twice is coincidence. Three times is policy” –
Bastille Day, celebrated on July 14, marks the anniversary of the 1789 storming of the Bastille prison in Paris, a pivotal event that symbolized the uprising against the monarchy and sparked the French Revolution. It represents the birth of modern France and the values of "Liberté, Égalité, Fraternité". The day is commemorated with military parades, fireworks, concerts, and public celebrations across the country.
Yesterday (July 14), Italian courts in Milan set off some fireworks of their own, placing LVMH’s Loro Piana under court administration. The judicial oversight will last for one year amid disturbing labor violations tied to its subcontractors. Italian prosecutors found that migrant workers at several Italian production sites were forced to work far beyond legal hours, slept on factory floors, and earned wages far below Italy’s minimum standard. The court cited Loro Piana’s repeated failure to conduct adequate due diligence across its supply chain, despite selling sweaters that retail for upwards of €2,000.
The court-appointed administrator will now monitor and clean up Loro Piana’s operations, though it is important to note that the company itself isn’t under direct criminal investigation. Loro Piana claims it cut ties with the implicated supplier within 24 hours of being informed of the subcontracting practices. This marks the fifth major labor-related probe in Italy’s luxury sector in recent years, adding Loro Piana to a growing list that includes Armani, Dior, and Valentino Bags. Despite LVMH's €2 billion acquisition of the brand in 2013, prosecutors accuse the Maison of “years of negligent oversight that effectively enabled exploitation deep within its prestige supply chain.”
This is not the first time an LVMH owned brand has been in trouble over labor law violations. In yet another blow to LVMH’s labor track record