Dior unit put under court administration in Italy over labour exploitation

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

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

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

A representative for LVMH could not immediately be reached for comment.

Dior is the third fashion company to be targeted by the Milan court over similar labour issues following the Armani Group in April and an Italian handbag company last year.