Recently, an Italian court has announced the early termination of a special administration regime placed on Manufactures Dior SRL, an Italian subsidiary of French luxury giant LVMH, over allegations of labour exploitation in the production of Dior-branded handbags. The unit, fully owned by Christian Dior Italia SRL, was placed under court supervision in June 2024 for one year after an investigation found it had subcontracted work to Chinese-owned firms that mistreated workers.
The Milan court stated that over the past nine months, the company had adopted the necessary organizational model and supplier control procedures, leading to the decision to revoke the supervision ahead of schedule. Judges noted that Dior swiftly severed ties with at-risk suppliers and implemented best practices that received court approval.
With this ruling, the Milan court has now lifted all three special administrations it imposed on fashion brands last year, following similar decisions for Alviero Martini and an Armani unit. Dior welcomed the court’s decision, stating it had “further strengthened its operations along the supply chain, setting a new benchmark for best practice in the industry.”
The case is part of broader investigations by Italian prosecutors into labour exploitation within the luxury fashion supply chain. In June, Milan’s Court of Justice proposed a nationwide framework for luxury brands to strengthen supplier monitoring and ensure compliance with labour laws.
