Dior subsidiary placed under court administration due to exploitation allegations

An Italian subsidiary of French luxury brand Dior has been placed under court administration amid allegations of exploitation among its suppliers.

A judge in Milan appointed an external director for Manufacturers Dior SRL after a probe into four of its Chinese-owned suppliers found evidence that they were mistreating workers, each of which had been working in the area surrounding Milan.

In a document seen by Reuters, it was made clear that Italian police had carried out inspections at the sub-contracted suppliers between March and April, where it was discovered that among the 32 staff, several were either illegal immigrants or were working without required documents.

It was also alleged that the employees had worked and lived in conditions below the minimum requirements, with data mapping further revealing "seamless day-night production cycles", suggesting that they were on hand 24/7.

This is the latest case of a judicial administration among luxury brands operating in Italy, having followed a similar move initiated against Armani which had also been accused of exploiting workers at an Italian factory.