Adolfo Urso, Italy’s industry minister, told fashion trade bodies during a meeting that a few unlawful businesses in the fashion supply chain have tainted the image of 'Made in Italy', according to sources cited by Reuters.

Last week LVMH’s Loro Piana cashmere brand was put under judicial administration for a year for allegedly subcontracting production to suppliers that allegedly exploited workers.

The administration seeks to address the shortfalls in its supply chain.

According to the Business and Human Rights Resource Centre, Loro Piana said: “In breach of its legal and contractual obligations, the supplier did not inform Loro Piana of the existence of these subcontractors. Loro Piana was made aware of this situation on 20 May, and, as a result, the maison terminated all relations with the concerned supplier in less than 24 hours.

“Loro Piana firmly condemns any illegal practices and reaffirms its unwavering commitment to upholding human rights and compliance with all applicable regulations throughout its supply chain.”

The Reuters report says this is the fifth luxury brand to undergo such court monitoring in Italy since early 2024.

"We cannot allow the illicit behaviour of a few to compromise the reputation of the entire sector, penalising many virtuous companies and, consequently, our Made in Italy brand, which is a symbol of excellence and quality," Urso said.

The ministry is working on a measure to certify the sustainability and legality of companies in the supply chain in advance, he added, so that brands do not have to answer for the conduct of their suppliers or subcontractors.