Published by Global Banking & Finance Review®
Posted on December 8, 2025
2 min readLast updated: January 20, 2026
Add as preferred source on GoogleTod's delays advertising ban ruling by pledging tougher supply-chain checks. The luxury shoemaker aims to prevent labour abuses by subcontractors.
By Emilio Parodi
MILAN, Dec 3 (Reuters) - An Italian judge has granted a request by Tod's to postpone a hearing on whether its advertising should be banned for six months due to concerns over alleged labour abuses by subcontractors, after the luxury shoemaker pledged to strengthen checks on its supply chain.
The hearing, originally scheduled for Wednesday, has been moved to February 23, 2026.
Milan prosecutors requested the six-month ban on November 20 when they placed Tod's and three of its executives under investigation over suspected labour abuses.
Ahead of Wednesday's hearing, Tod's submitted a five‑page petition, reviewed by Reuters, asking for an adjournment to give it time to implement measures aimed at preventing any repeat of labour exploitation by its subcontractors.
The fashion firm said in a statement it welcomed the judge's decision "to grant the Tod’s Group the necessary time to complete the additional control-strengthening measures that the company initiated long ago."
TIES TO FOUR SUBCONTRACTORS ALREADY CUT, TOD'S SAYS
In the petition, Tod's said it had already cut all ties with the four subcontractors under investigation for labour exploitation.
The fashion house, known for loafers and other high-end leather goods, said it would take steps to control its supply chain. These include hiring new management, updating procedures for workshops and subcontractors, and fresh mandatory training for all staff from January.
Tod's told the judge it had hired an external consultant to review and strengthen safeguards regarding its supplier network.
The Milan prosecutors alleged that Tod's was complicit in labour exploitation at subcontracted workshops and ignored problems flagged by third-party audits for several years.
In October, founder Diego Della Valle defended Tod's conduct and warned that the investigations risked eroding the reputation of the "Made-in-Italy" label.
L Catterton, a private equity firm backed by French luxury group LVMH, took Tod's private last year in agreement with the group's main shareholder, the Della Valle family.
(Reporting by Emilio Parodi, editing by Alvise Armellini, Gavin Jones and Bernadette Baum)
Corporate governance refers to the systems and processes by which companies are directed and controlled. It encompasses the relationships among stakeholders and the goals for which the corporation is governed.
Compliance in finance refers to the process of ensuring that a company adheres to laws, regulations, guidelines, and specifications relevant to its business operations.
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