Milan šC An Italian subsidiary of French luxury giant LVMH that makes Dior-branded handbags was placed under court administration on Monday after a probe alleged it had subcontracted work to Chinese-owned firms that mistreated workers.
This is the third such decision this year by the Milan court in charge of preemptive measures, which in April named a commissioner to run a company owned by Giorgio Armani due to accusations the fashion group was ¡°culpably failing¡± to adequately oversee its suppliers. Armani Group said at the time it had always sought to ¡°minimize abuses in the supply chain.¡±
According to a copy of the Monday decision, the court said that prosecutors alleged that the violation of rules was not a one-off among fashion companies with manufacturing capacity in Italy, but systematic due to the need to pursue higher profits.
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