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.…