Milan court lifts Dior Italian unit judicial administration
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.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.
A Milan court on Friday freed Manufactures 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.
Manufactures 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".
Manufactures 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".
On Friday, Dior -- which is owned by French luxury giant LVMH -- said it "welcomes the successful early resolution of the judicial administrative proceedings and appreciates the court's recognition of our unwavering commitment to the highest ethical and operational standards".
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"Thanks to a constructive and collaborative dialogue with the court of Milan and the court-appointed experts, Dior was able to further enhance our supply chain operations and establish a new benchmark for industry best practices," it said.
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.