Italian prosecutors are seeking to place luxury shoemaker Tod’s S.p.A. under judicial administration over alleged labour abuses in its Italian supply chain. Tod’s is the sixth high-end Italian brand to face court supervision since early 2024, following similar measures against Loro Piana, Valentino, Dior, Armani, and Alviero Martini.
The case, revealed through a decision of the Italian Supreme Court, arises from prosecutors in Milan alleging that Tod’s “culpably failed” to adequately oversee its subcontractors to pursue higher profits. Tod’s itself is not under criminal investigation, rather the authorities are focused on ensuring compliance and addressing issues in the supply chain. The Supreme Court has set a hearing for 19 November 2025 to resolve a jurisdictional dispute between Milan prosecutors and the local appeals court. The court determined that the case should be heard in the Marche region, where Tod’s is headquartered.
Tod’s told Reuters that it had been informed of the hearing but had no further details. The company reiterated that it complies with current legislation, including labour law, and carries out regular checks on the workshops it uses. It also stated that workshops are required to sign agreements guaranteeing compliance with labour contracts and acceptable working conditions before commencing work.
The investigation centres on subcontractors operating in both Milan and the Marche region. In Milan, from 2023 to 2024, Tod’s assigned production of sales-assistant uniforms to a company with no production capacity, which subcontracted the work to another firm. That firm in turn subcontracted to two Chinese-owned factories, which were placed under investigation after inspections revealed worker exploitation. In the Marche region, from January 2024 to January 2025, Tod’s directly contracted two Chinese-owned workshops (one of which subcontracted again) for the production of shoe uppers and other footwear components.
Inspectors found workers were paid on a piecework basis, resulting in net hourly wages between €2.75 and just over €3.00, less than half of the €10.00 stipulated by the national collective agreement. Deductions of €150 for accommodation and €100 for food were also recorded.
The case highlights growing government and industry attention to worker exploitation in Italy’s luxury fashion sector. Italian Industry Minister Adolfo Urso said the government has proposed a certification scheme allowing fashion companies to obtain pre-emptive third-party verification that their supply chains comply with labour law, aiming to safeguard the “Made in Italy” reputation.
The outcome of the Supreme Court hearing on 19 November will determine which court has jurisdiction and whether judicial administration can proceed. If imposed, a court-appointed administrator could oversee portions of Tod’s operations or its supply chain to address the alleged compliance failures. The case underlines the importance of robust due diligence, transparency in subcontracting, and adherence to labour standards across the luxury fashion sector in Italy.
Thomas Reuters article