By Mimosa Spencer

PARIS (Reuters) - Christian Dior Couture has recruited Benedetta Petruzzo, the CEO of Prada's fast growing Miu Miu label, as its managing director, the LVMH-owned brand said on Tuesday.

The move comes over a year and a half after Delphine Arnault, the eldest child of LVMH boss Bernard Arnault, took the helm at Dior and as it grapples with the fallout of a judicial probe in Italy into working conditions at subcontractors.

Petruzzo will be responsible for product teams at Dior, including supply chain teams, reporting to Delphine Arnault, LVMH said on LinkedIn. Her recruitment, effective Oct. 15, was first reported by trade publication WWD.

Petruzzo replaces Charles Delapalme, a rising star at LVMH who has also held prominent positions at the group's Fendi and Louis Vuitton labels. "Important new responsibilities" for Delapalme will be announced at a later date, LVMH said.

Petruzzo, a former Bain consultant, worked at Kering's eyewear business for five years before joining Prada as general manager of Miu Miu in February 2020.

Prada has outshone luxury rivals during the recent downturn, including in China, where shoppers are pulling back on high end purchases amid a property crisis. It has seen soaring growth at Miu Miu, whose creative director is Miuccia Prada.

LVMH in July pledged to speed up its supply chain strategy and strengthen audits and controls while increasing control over production at Dior, LVMH's second largest label after Louis Vuitton, following the probe in Italy, made public in June.

That investigation prompted Italy's competition authority to look into whether fashion labels Armani and Dior had misled consumers, while Europe's top asset manager Amundi and other investors asked LVMH to take stronger steps to monitor its suppliers' treatment of workers.

All five of Bernard Arnault's children hold important management positions in the sprawling luxury empire.

(Reporting by Mimosa Spencer; Editing by Mark Potter)