MILAN – Giorgio Armani Operations SpA, the manufacturing arm of the Giorgio Armani Group, has been put into judicial administration by a Milan court for its alleged negligence in auditing its suppliers.
The development comes as part of a labor abuse case filed by Milan prosecutors Luisa Baima Bollone and Paolo Storari, who reportedly found that Manifatture Lombarde Srl, a Giorgio Armani Operations SpA’s supplier, subcontracted part of its manufacturing of Armani-branded handbags, accessories and leather goods to companies based in the Milan suburbs that allegedly exploited their workers and favored black market labor.
As per Italian law, judicial administration is a legal action enforced as a prevention measure, leveraged by the court as a reprimand of the company, in this case allowing it to impose on Giorgio Armani Operations SpA a court-named consultant tasked with helping the enterprise enhance its auditing across the supply chain by implementing adequate operational mechanisms.
The development does not entail any charges against the fashion company and the namesake entrepreneur.
Contacted by WWD, Giorgio Armani Operations SpA stated the following: “We learn of the prevention measure decided by the Courts of Milan against GA Operations. The company has always had control and prevention measures in place to minimize abuses in the supply chain. GA Operations will collaborate with the utmost transparency with the competent bodies to clarify its position on the matter.”
Through the judicial administration the Milan court expects to clear Giorgio Armani Operations SpA from any ties, even if indirect, with companies facing labor abuse accusations. The latter employed workers, including Chinese and Pakistani people, allegedly forced to work in unsafe conditions, live in dormitories inside the factories and without any safety and labor training or medical eligibility.
The same Milan prosecutors have recently filed a similar procedure against accessories brand Alviero Martini, putting it, too, in judicial administration for the alleged labor abuses perpetrated by some of its subcontractors.
