Luxury fashion behemoths Giorgio Armani and Dior Italia are facing scrutiny as Italian competition authorities initiate investigations into their supply chain practices.
Raided Headquarters
According to 20 Minutes the probe was sparked by allegations of labor abuses within their subcontractors. This has cast a shadow over the brands' claims of artisanal excellence and ethical production standards.
Italian authorities conducted raids at the headquarters of Giorgio Armani and Dior Italia, supported by special anti-trust units and financial guards.
The investigation centers around allegations that these luxury houses turned a blind eye to labor conditions at subcontractors like Manifatture Lombarde srl, which reportedly employed undocumented workers in Milanese workshops producing Armani-branded leather goods and accessories.
Partner of Olympics
Christian Dior Italia, a subsidiary of LVMH, has also come under scrutiny for similar reasons. Investigations revealed that subcontractors, described as Chinese enterprises, employed workers in illegal and exploitative conditions, including inadequate pay, excessive working hours, and substandard living quarters.
The timing of these revelations is particularly sensitive for LVMH, which recently elevated its profile as a premium partner of the upcoming Paris Olympics. This scandal threatens to tarnish the carefully cultivated image of these luxury brands, known for their emphasis on quality craftsmanship and ethical practices.
Both Armani and Dior have pledged cooperation with authorities, denying the allegations and expressing confidence in a favorable outcome from the investigation.
However, these developments underscore broader concerns about transparency and accountability in global supply chains, especially within the luxury sector.
