After a division of France's LVMH in Italy was placed under court administration in connection with an investigation into worker exploitation, Milanese prosecutors are now looking into the supply chains of about a dozen additional fashion labels, according to a person with knowledge of the situation, reported CTV News.
A Milan court named a commissioner to oversee an LVMH-owned manufacturer of handbags bearing the Dior mark after an examination of four of its suppliers located near Italy's fashion city revealed unjust working conditions for employees.
LVMH отказа да коментира решението на съда.
The source told Reuters that Milan prosecutors and Italian police are looking into additional small factories that supply about a dozen other brands, but they would not elaborate because the information is private.
The purpose of the special commissioner's appointment is to allow the fashion brands' subsidiaries to continue operating while resolving issues with their supply chains.
Copies of the court rulings seen by Reuters revealed that while the suppliers the investigation is focusing on are accused of worker abuse, neither LVMH nor Armani are the subject of an investigation.