PARIS — A Milan court has ordered the revocation of the judicial administration imposed since June on Dior over allegedly illegal labor practices at some of its suppliers.
Dior said in a statement it welcomed the “successful early resolution” of the procedure, which came ahead of the one-year term initially outlined.
The court had recognized its “unwavering commitment to the highest ethical and operational standards,” the French luxury brand noted. “Thanks to a constructive and collaborative dialogue with the court of Milan and the court-appointed experts, Dior was able to further enhance [its] supply chain operations and establish a new benchmark for industry best practices.”
Last year, an Italian investigation was launched into alleged worker exploitation at several Chinese-owned firms in Italy producing luxury goods for the Armani Group, Dior and Alviero Martini.
In the wake of the probe, Dior had vowed to take a larger proportion of its production in-house and in November, revealed the creation of a new industrial department tasked with strengthening its overall production capacity over the long term and ensuring the continuity of its know-how.
In a separate press statement, the court declared that Manufactures Dior Srl, an Italy-based subsidiary of the French brand, had “reacted positively and correctly,” taking the receivership as “an opportunity for improvement and renewal” with corrective and preventive measures swiftly put in place.
“Dior remains deeply committed to upholding and enforcing our values of transparency, integrity, and respect throughout our supply chain,” it continued in the statement issued on Wednesday. “We continue to monitor, and whenever possible strengthen, our internal procedures to maintain fair and equitable working conditions for everyone who contributes, with great commitment and skill, to creating the finest quality Dior products.”
Earlier this month, the same form of special administration imposed on Giorgio Armani Operations, a unit of the namesake designer’s fashion group, was revoked.
