MILAN — Tod’s is the latest luxury brand to be scrutinized for allegedly failing to properly audit its suppliers whose subcontractors allegedly engaged in sweatshop schemes and workforce exploitation.
Milan prosecutors had been investigating in Tod’s’ value chain since last year, unearthing labor abuse and poor working conditions at a handful of its subcontractors in the Lombardy and Marche regions. The former were reportedly involved in the production of staff uniforms, while the latter were supplying footwear’s upper parts.
Tod’s is not facing any criminal charges, but Milan prosecutors have requested that the Italian luxury brand is put under judicial administration, the same procedure faced over the past two years by Loro Piana, Valentino, Dior and Giorgio Armani, among others.
“Tod’s can only reiterate its full compliance with all applicable laws, including those governing labor practices. The company’s inspectors carry out regular and thorough checks on the workshops selected and employed by Tod’s. These workshops, which are frequently visited by the company’s managers, are required to sign agreements — prior to commencing any collaboration with the group — that safeguard the quality of the working environment and the conditions of the employees, as well as, of course, compliance with national labor contracts,” the company said in a statement issued Wednesday.
It added: “Tod’s facilities are widely regarded as a worldwide example of excellence for environmental protection and for the social services offered to improve the daily lives of our employees. For Tod’s, product quality and the quality of our employees’ working lives are essential and inseparable values. Firm in this belief, we will review the relevant case documents in the coming days and will promptly provide all necessary clarifications to demonstrate our complete non-involvement in the matter.”
The luxury group also expressed its disappointment over the probe’s development. “There is considerable disappointment in reflecting that, had we been consulted at the appropriate time — many months ago — we would have been able to provide all relevant clarifications and clearly explain our production organization, which has always operated in strict compliance with rules and regulations,” it said.
The probe, first reported by Reuters, was uncovered when the Milan prosecutor in charge of the investigations, Paolo Storari, appealed Milan Court and Milan Appeal Court rulings which, on one side, dismissed and, on the other, asked for the relocation of proceedings.
In particular, in relation to labor abuse incidents uncovered in the Lombardy region, a Milan Court dismissed charges against Tod’s claiming that since subcontractors produced staff uniforms rather than goods aimed at end consumers, this would qualify a different degree of negligent facilitation of labor abuse. Last May the ruling was confirmed by the Milan Appeal Court, which rejected the charges for a slightly different reason, claiming that Tod’s should not be charged for negligence since those where tier-two subcontractors.
As for incidents that occurred at Tod’s’ Marche-based subcontractors, both the Milan and Milan Appeal Courts said they have no territorial jurisdiction on them and have ruled to pass proceedings along to the Court of Ancona, in the Marche region.
Storari and his office have appealed both decisions to the Court of Cassation, Italy’s highest appeal court, hoping to flip the rulings. A hearing is scheduled for Nov. 19.
Tod’s spring 2026
Giovanni Giannoni/WWD
Tod’s is only the latest luxury brand to be involved in such a probe. Over the past two years prosecutors have identified some luxury brands’ negligence in properly auditing their supply chain partners, which were engaging in work exploitation. As a result, brands have been put into judicial administration to correct and enhance audits and oversight through court-mandated procedures. Dior’s and Giorgio Armani’s probes were fully resolved and the judicial oversight lifted.
The probes have sent shock waves through the luxury industry and placed the sector’s supply chain under scrutiny, all amid mounting pressure on fashion as a result of the global downturn in luxury spending.
