Prosectors said these companies exploited workers to pump out bags for a small fraction of their store price. According to documents examined by authorities, Dior paid a supplier $57 to produce bags that retail for about $2,780, Reuters reported last month. Court documents showed that Dior, a subsidiary of LVMH, submitted a memo highlighting its supply chain improvements, the Wall Street Journal reported Tuesday. Advertisement"It's not something sporadic that concerns single production lots, but a generalized and consolidated manufacturing method," said court documents seen by Reuters about the decision to place Dior under administration. "The main problem is obviously people being mistreated: applying labour laws, so health and safety, hours, pay," Milan Court President Fabio Roia told Reuters earlier this year.

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Persons: —, LVMH, Prosectors, Dior, Giorgio Armani, Armani, Fabio Roia, Bernard Arnault, Delphine Organizations: Service, Business, Reuters, LVMH, Wall Street, Bloomberg, Dior Locations: Milan, China