MILANO (Reuters) – An Italian court on Friday placed under judicial administration a company owned by Italian fashion group Armani for indirectly subcontracting its production to Chinese companies that exploited workers.
The court in Milan ordered a one-year receivership for Giorgio Armani Operations, described as an industrial company of the Armani Group, according to the ruling seen by Reuters.
It said Giorgio Armani Operations had entrusted the production of its bags to two firms that subcontracted the work to four Chinese companies which paid their workers 2 to 3 euro per hour.
Armani Group said in a statement that it had “always had control and prevention measures in place to minimise abuses in the supply chain,” adding that it would work with the authorities to clarify its position.
(Reporting by Emilio Parodi, editing by Gavin Jones)
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