Dior unit placed under judicial administration in Italy for labor exploitation

An Italian court on Monday placed a company owned by the Italian unit of French fashion group Christian Dior under receivership for outsourcing its production to Chinese companies that exploited workers.

The Milan court ordered a one-year administration for Manufacturers Dior Srl, according to the ruling seen by Reuters.

He said the company did not apply “appropriate measures to verify the actual working conditions or the technical capabilities of the contracting companies.”

An LVMH representative could not immediately be reached for comment.

Dior is the third fashion company targeted by the Milan court over similar labor issues, after the Armani Group in April and an Italian handbag company last year.