Italian Court Sanctions Dior for Labor Exploitation

An Italian court has placed the Italian unit of French fashion group Dior under judicial administration for subcontracting production to Chinese companies that exploited workers. The court mandated a one-year administration period for Manufacturers Dior Srl. This follows similar sanctions against Armani Group and an Italian handbag company.

An Italian court on Monday placed under judicial administration a company owned by the Italian unit of French fashion group Christian Dior for subcontracting its production to Chinese companies that exploited workers. The court in Milan ordered a one-year administration for Manufacturers Dior Srl, according to the ruling seen by Reuters.

It said the company did not apply "appropriate measures to verify the actual working conditions or the technical capabilities of the contracting companies". A representative for LVMH could not immediately be reached for comment.

Dior is the third fashion company to be targeted by the Milan court over similar labour issues following the Armani Group in April and an Italian handbag company last year.

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