Armani Under Scrutiny: Court Steps in Over Subcontractor Labor Violations

An Italian court has taken a significant step by placing a division of the esteemed fashion giant Armani under partial judicial control. This move comes after it was discovered that one of Armani’s subcontractors, Manifatture Lombarde, was involved in labor law violations, particularly employing undocumented migrants in the production of luxury items. While Giorgio Armani Operations, the company in question, isn’t directly accused of any misconduct, its association with Manifatture Lombarde has brought it under the court’s radar.

The court’s decision, announced on April 5, 2024, entails the appointment of a consultant to work with Armani’s management for a year, aiming to enhance supplier relations and prevent any form of criminal infiltration within its operations. The court emphasizes that this measure is preventative, intending to swiftly dissociate Armani from any unlawful practices rather than serving as a punitive action, reported by “Reuters“

Investigations revealed that Manifatture Lombarde, contrary to the ethical code outlined in its contract with Armani, which strictly prohibits subcontracting, had no workshops of its own. Instead, it outsourced production to “Chinese workshops” in the Milan area, where workers, mainly of Chinese and Pakistani origin, were subjected to exploitative conditions. These included unsanitary working environments, violation of basic safety norms, and forced acceptance of unfavorable working terms, such as extended working hours beyond what was officially declared.

The Armani Group has responded to the court’s decision, asserting its commitment to maintaining control and prevention measures to minimize abuses within its supply chain. The company pledges full cooperation with the authorities to shed light on the situation and reaffirm its stance on ethical business practices.

Giorgio Armani, the fashion icon behind the brand, known for his vast influence in the luxury fashion industry, finds his company in a challenging situation that tests the brand’s adherence to ethical standards. With a fortune surpassing 11 billion euros, Armani stands as Italy’s third wealthiest individual, a status that underscores the significant impact of this court ruling on his fashion empire.