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Reuters Published January 1, 2025 Reading time
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Inside luxury goods' broken audit system

By
Reuters Published
January 1, 2025

LVMH-owned Dior's production arm in Italy, Manufactures Dior, relied on formal inspections to assess working and safety standards inside its supply chain last year. In some cases, such certifications missed glaring problems, a Reuters review of unpublished court documents has found.

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AZ Operations, a sub-contractor of Manufactures Dior tasked with the production of leather items and based near Italy's fashion capital Milan, was accused by Italian prosecutors in June of being a front for an operation that exploited workers.
However, AZ Operations passed two environmental and social inspections in 2023, in January and July, according to unpublished audit documents reviewed by Reuters.

Widespread Milan investigations have uncovered malpractice inside the Italian luxury goods supply chain of Dior, Giorgio Armani and Alviero Martini this year, Reuters has previously reported.