An Italian court has officially ended the special administration imposed on a Giorgio Armani unit due to labor violations within its subcontracted supply chain. The decision follows corrective actions taken by the company to align with regulatory requirements.
Investigation and Initial Ruling
Giorgio Armani Operations, the industrial arm of the luxury fashion house, was placed under court administration in April 2024 after investigators discovered that subcontracted work in Italy had been linked to Chinese-owned firms exploiting workers.
The company had outsourced the production of bags, belts, and leather goods to two firms, which then further subcontracted the work to four Chinese-owned workshops on the outskirts of Milan.
Corrective Actions and Court Approval
Over the past 10 months, Armani has implemented an enhanced organizational model and stricter supplier control measures. “In detail, the fashion house resolved relationships with ‘at-risk’ suppliers extremely quickly and also developed several best practices that received court approval,” the Milan court stated.
Armani welcomed the decision, emphasizing that the violations were due to the misconduct of select suppliers. “Two of our numerous suppliers betrayed the founding values of the Armani Group, which has never pursued profit as an end in itself and has never waived respect for workers and consumers,” the company said.
Broader Industry Scrutiny
The case is part of a wider crackdown by Italian authorities on labor exploitation in the luxury fashion industry. Milan’s Court of Justice has proposed a nationwide compliance framework for brands to enforce stricter oversight of their supply chains. While the Armani case is now closed, similar investigations into other luxury brands, including LVMH’s Dior unit, remain ongoing.
The ruling underscores the increasing scrutiny on ethical supply chain practices in the high-end fashion sector.