Luxury shoemaker Tod’s became the latest Italian fashion powerhouse embroiled in supply chain controversy, as prosecutors requested the company be placed under judicial administration over serious and systematic labor abuses in its Italian workshops and ties to Chinese-owned factories. The story, first reported by WWD and confirmed by Reuters, highlights deep concerns about hidden exploitation in two seemingly disparate realms, luxury on one side and Chinese workshops on the other, that converge with a singular aim: minimizing expenses and maximizing profits by circumventing legal and labor regulations.
The Core Allegations: Exploitation in the Supply Chain
- Labor Abuse Uncovered: Court documents reveal that Tod’s subcontracted parts of its production—specifically the manufacturing of company uniforms and components for its famous leather shoes—to third parties in Milan and the Marche region. These entities further subcontracted to Chinese-owned workshops, where investigators found workers paid little per hour, less than one-third the legal Italian minimum.
- Unethical Working Conditions: Workers reportedly slept in makeshift dorms inside the factories, sometimes working as much as 90 hours a week for wages far below Italian standards. Many were unregistered or undocumented immigrants, often from China, and some had 150 euros deducted per month for accommodation and 100 euros for food.
- Broader Pattern: Tod’s is the sixth major luxury label in Italy to face judicial administration or similar supervision. Other brands targeted by Italian authorities include Loro Piana (LVMH), Valentino, Dior, Armani, and Alviero Martin.
Tod’s Official Response
Tod’s, in a statement to Reuters and replicated across several international sources, denied any deliberate wrongdoing: “We can only reiterate that Tod’s complies with current legislation, including labour law, and that constant checks are carried out on the workshops we select and use.”
What Is Judicial Administration—and What Happens Next?
If the court grants prosecutors’ request in a hearing set for November 19, 2025, Tod’s operations could be overseen by a court-appointed administrator responsible for enforcing compliance in all factories. It’s a move previously used in Italy to force reform within companies linked to exploitation but not directly subject to criminal charges.
Importantly, Tod’s as an entity is not under criminal investigation—the measure is corrective, not punitive, with the focus aimed at guaranteeing swift changes in supply chain management.
The Bigger Picture: An Industry Under the Microscope
The issue of subcontracting to Chinese-owned workshops, often located in Italy, is increasingly common across Italian luxury brands. It’s part of a wider story, with over 100 global brands—from tech to apparel—implicated in forced labor schemes across China’s manufacturing regions in 2025, as reported by the Bureau of Investigative Journalism and Human Rights Watch.
Italian prosecutors, led by Milan’s office and the Supreme Court, are sounding alarms about the damage to Italy’s global reputation. Illegal operations in the fashion supply chain have tarnished the reputation of Made in Italy, said Italian industry minister Adolfo Urso earlier this year. A Worrying Pattern in 2025 alone, luxury sector investigations found wage theft, unethical accommodations, and unchecked subcontracting in dozens of workshops from Milan to Tuscany—prompting Italy’s government to propose stricter certification systems and more transparent oversight for the industry.
Industry and Political Response
Adolfo Urso, Italy’s industry minister, called for new supply chain certifications and tighter controls. This is about defending both workers and the true value of Italian luxury.
Unions and advocacy groups have voiced strong concerns about labor exploitation becoming normalized, echoing Tod’s case as a wake-up call for the entire luxury sector.
Tod’s and the Future of Ethical Fashion
With hearings set for November 2025, Tod’s faces both reputational and structural pressure:
- To ensure its supply chain is clean and well-audited
- To restore the Made in Italy mark as a guarantee of quality and ethical manufacture
- To participate in broader industry efforts at transparency and reform
As investigations continue, all eyes are on Tod’s, and the wider Italian luxury sector, to see if accountability and human rights can finally match luxury’s global image.
