MILAN – November 20, 2025 – Italian prosecutors have placed luxury fashion group Tod’s and three of its executives under investigation for alleged labour abuses and are seeking a temporary six-month ban on company advertising, according to judicial documents released on Thursday. This marks the first time a major Italian fashion house and its top management have been directly targeted for labour exploitation allegations.

Tod’s, renowned for its high-end loafers and leather goods, stated it is calmly reviewing the allegations and emphasized its commitment to ethical business practices.

“The company is assessing the allegations while upholding its reputation for quality and compliance within the Made-in-Italy supply chain,” Tod’s said in a statement.

Allegations and Investigative Findings

According to a 144-page document seen by Reuters, Milan prosecutors allege that Tod’s was aware of and complicit in labour exploitation at subcontracted workshops, despite third-party audits over several years flagging serious problems. The investigation focuses on:

• Two Chinese-owned workshops in the Milan area
• Three Chinese-owned factories in Marche, the central Italian region where Tod’s is headquartered

The prosecutors’ request for a six-month advertising ban targets the company’s luxury goods, signaling an unprecedented approach to tackling alleged misconduct in Italy’s high-end fashion industry.

Legal Context and Jurisdiction Disputes

This case escalates an ongoing investigation, which initially sought judicial administration for Tod’s similar to measures applied to five other high-end fashion labels in Milan. However, disputes over jurisdiction have complicated proceedings. While Milan courts initially supported the administrative measures, they recommended the matter be handled by judges in Marche.

Prosecutors appealed to Italy’s Supreme Court, the Cassazione, which rejected the appeal on Wednesday. It remains unclear how this ruling will influence the new phase of the investigation.

Founder’s Response

Tod’s founder Diego Della Valle, who is not among the executives under investigation, defended the company’s practices, warning that prolonged supply chain probes risk damaging the reputation of the Made-in-Italy label.

The case follows Tod’s acquisition by L Catterton, a private equity firm backed by French luxury conglomerate LVMH, which took the company private last year in coordination with the Della Valle family.

Implications for Italy’s Fashion Industry

If the allegations are upheld, this unprecedented advertising ban could have a major impact on Italy’s luxury fashion sector, which relies heavily on outsourced manufacturing in foreign-owned workshops. The case also highlights ongoing scrutiny of ethical labor practices and supply chain accountability in global fashion, particularly within high-value, Made-in-Italy brands.

The next hearing is scheduled for December 3, 2025, when company representatives may be questioned or submit written defenses.