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A Dior unit has been released early from court supervision, put in place after an Italian investigation linked it to sweatshops on the outskirts of Milan.
The probe shone a spotlight on a shadow economy of cut-price manufacturers operating in the heart of the luxury supply chain, highlighting gaps in the monitoring processes big brands say they have in place to prevent labour exploitation.
Dior said it worked with court-appointed experts to enhance its supply-chain operations and “establish a new benchmark for industry best practice.”
Armani, which had also been caught by the probe, was released from court-appointed supervision last week.
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“Dior remains deeply committed to upholding and enforcing our values of transparency, integrity, and respect throughout our supply chain,” the company said. “We continue to monitor, and whenever possible strengthen, our internal procedures to maintain fair and equitable working conditions for everyone who contributes, with great commitment and skill, to creating the finest quality Dior products.”
Learn more:
What Happened to Italy’s Luxury Sweatshops Investigation?
It’s been almost a year since Italian prosecutors linked Armani and then Dior to sweatshops on the outskirts of Milan as part of an investigation that was expected to put up to a dozen more fashion brands under the microscope. In response, officials and industry leaders have rushed to tighten controls over the luxury supply chain.
Disclosure: LVMH is part of a group of investors who, together, hold a minority interest in The Business of Fashion. All investors have signed shareholders’ documentation guaranteeing BoF’s complete editorial independence.
