Milan court lifts Dior Italian unit judicial administration

A Milan court on Friday freed Dior Srl from
judicial administration, praising the fashion company for the way it reacted
to accusations regarding subcontractors who violated labour law.

This measure was lifted before the initial twelve-month deadline due to the
“virtuous path taken by the company following the court’s instructions”, the
court said in a statement.

Dior Srl, a unit of Christian Dior Italia, itself a unit of its French
parent company, “reacted in a positive and correct manner”, the court said,
praising the company’s “reorganisation”, particularly with regard to “supplier
selection procedures”.

Dior Srl was placed under judicial administration in June, for what police
said was a failure to prevent labour exploitation within its supply chain.

According to a police statement at the time, an investigation identified
suppliers described as Chinese-owned factories in Italy, “which managed to
reduce costs by resorting to the use of irregular and illegal workers in
exploitative conditions”.

In response, Dior — which is owned by French luxury giant LVMH — said it
condemned “the discovery of illegal practices at two of its suppliers
responsible for the partial assembly of men’s leather goods”.

A unit of Armani was also placed under judicial administration last year
following concerns over labour law violations by subcontractors, but that was
lifted last week.(AFP)