LVMH's Dior Manufactures SRL in Italy Placed Under Court Administration Amid Labor Exploitation Probe

Jun 11, 2024, 02:06 PM

An Italian subsidiary of French luxury giant LVMH, Dior Manufactures SRL, which manufactures Dior-branded handbags, has been placed under court administration due to allegations of labor exploitation. The investigation revealed that the company had subcontracted work to Chinese-owned firms that mistreated workers. The court in Milan appointed a commissioner to oversee the administration of the unit after uncovering illegal working conditions at four of its suppliers. The probe is part of a broader investigation by Italian prosecutors into the supply chains of around a dozen more fashion brands, focusing on labor exploitation and illegal working conditions. Sewing a bag for 2.6 thousand euros cost 53 euros.