Italian court lifting controls placed in Armani Company for labor practices

An Italian court has ended the early administration imposed on a unit of the Armani Fashion Group for the labor practices of its Chinese property subcontractors, he said Tuesday, because the company had taken all the necessary corrective measures.

The operations of Giorgio Armani, described as the industrial arm of the Armani group, was put under judicial administration for a year in April after an investigation discovered that the work in Italy had to be outsourced to Chinese property companies that exploited workers.

In the last 10 months, the company has adopted the required organizational model and supplier control procedures, said the Milan Court in a statement.

“In detail, the fashion house resolved relations with the 'at risk' suppliers' extremely fast and also developed several better practices that received the approval of the court,” the judges said.

According to the April ruling, Giorgio Armani's operations had subcontracted the production of bags, belts and leather items to two companies, which in turn subcontracted the work to four Chinese companies with workshops on the outskirts of Milan.

Giorgio Armani's operations welcomed the ruling and said that two of their numerous suppliers “betrayed the founding values ​​of the Armani group, which has never had profits as an end in itself and has never renounced respect for workers and consumers “

“As also stood out in the revocation decision, the company already had a system of controls and structured and proven protection of its supply chain,” he said in a statement.
In October, the Court of Milan had raised the judicial administration imposed on the fashion brand Alviero Martini in January 2024.

In addition to Alviero Martini and Armani, the judges also placed an Italian subsidiary of the French luxury giant LVMH, which manufactures Dior brand bags, under the same special administration, again for lack of control over their supply chain.

The case in LVMH is still ongoing, as it started months later.

The investigations of Italian magistrates, in particular the office of the prosecutor of Milan, during the last year have discovered the alleged exploitation of workers in the fashion and luxury supply chain.

The Milan Court of Justice proposed in June a national scheme so that luxury companies intensify suppliers to ensure that they comply with labor laws.