Referring to "undisclosed and unauthorized subcontractors of one of its suppliers," the Italian luxury company stated that "in breach of its legal and contractual obligations, the supplier did not inform Loro Piana of the existence of these subcontractors.

The Loro Piana Spa case started in May when a Chinese workshop owner was arrested and his plant in the northwest Milan suburbs was closed by Carabinieri police from the Milan labour protection unit.