We are still processing the Loro Piana scandal. A luxury brand with such statue producing pieces selling upwards of 7000 uses sweatshop labor. Once again, another LVMH label has been hit with legal action in Italy. The 101-year-old cashmere name plate once was known as the epitome of traditional style. The softness, the heavenly feel of the material, the craftsmanship all justified the galaxy high sticker price. Believing fantasy is better than the unpleasant cost control reality.
In July 2025, Loro Piana’s pricey stitching unraveled as if it had been purchased from a 1 euro store. Italian prosecutors placed the company under a one-year court administration. The reasons are many, yet not shocking in light of past allegations against subcontracted producers. 7.000-euro pieces were produced in sweatshops under abusive conditions.
Migrant employees were forced to endure 90 hours per week shifts for $4 per hour.
Workers slept in the factory to make $120 jackets sold in fancy boutiques at $5.000. A sick burn to the buyer thinking he bought something made with Italian artistry, not by a person living in a hot, harshly lit, cramped prefab warehouse on the city outskirts.
This is not the first time Loro Piana has been in hot seat from a questionable supply chain. Last year there were accusations of South American Vacuna farmers working for free while supplying the Milan based company with materials for its collections. A company based in the center of Paris with a net worth of $240 billion can’t formulate a way to pay basic wages to the workers who are basis-of its success.
The question has to be asked again, why hasn’t LVMH cleaned up its act? The answer is simple. A business model not based on a quality product but on exploitation means big profits.
