A Milan court placed Italian luxury label Loro Piana SpA under judicial oversight for one year, saying the LVMH-owned label famous for its cashmere clothing failed to stop subcontractors from exploiting migrant workers.

An Italian court has placed LVMH group's high-end Italian cashmere firm Loro Piana under judicial administration for a year after allegedly uncovering worker abuse inside its supply chain, in the latest in a string of cases that have tainted the image of Italy's luxury brands.