An Italian court has given early release to Manufactures Dior SRL, an Italian subsidiary of French fashion house Christian Dior, from court supervision over its link to sweatshops. The announcement comes just a week after Armani were released from judicial administration, also connected to the unfair treatment of workers in its supply chain.

In June of last year the court had ordered that Manufactures Dior SRL be placed under judicial administration for one year, over the subcontracting of its manufacturing to companies that exploited and mistreated workers in factories on the outskirts of Milan.

According to the court’s ruling, Manufacturers Dior did not take “appropriate measures to verify the actual working conditions or the technical capabilities of the contracting companies.”

Between March and April of 2024, Italian police carried out inspections at the suppliers, named Pelletteria Elisabetta Yang SRL, New Leather Italy SRLS, AZ Operations SRLS, and Davide Albertario Milano SRL. Workers were discovered operating in “hygiene and health conditions that are below the minimum required by an ethical approach” and were forced to sleep in the factories. They were also paid less than minimum wage and were using dangerous machinery that was overused and posed a danger to their safety. Dior handbags are sold via the company’s website for as much as $9500. 

Historically, the ‘Made in Italy’ merchandise mark has been a signifier of quality and prestige but a series of reports coming from Milan about the use of unskilled labour and the exploitation of workers in filthy, unsafe factories has cast a dark shadow over it. Prosecutors in Milan claimed that the violation of rules was not a one-off among fashion companies within Italy, but systematic.

Christian Dior is a subsidiary of LVMH, the luxury goods conglomerate, controlled by Bernard Arnault, listed by Forbes as the world’s richest man, worth an estimated 214 billion dollars.