Tod's Chairman Fears Fashion Probes Damage "Made in Italy" Reputation

Diego Della Valle, the influential founder and chairman of the Italian luxury group Tod's, recently expressed profound concerns that ongoing investigations into Italy's intricate fashion supply chain are casting a shadow over the nation's globally renowned reputation for top-tier brands and exceptional quality products. These legal probes, which have intensified across the sector, risk undermining the very foundation of what "Made in Italy" represents on the world stage, according to the entrepreneur.

The urgency of Della Valle's statement was underscored by the fact that Italian prosecutors are currently seeking to place Tod's itself under judicial administration. This move comes amidst allegations of labour abuses among its suppliers, putting one of Italy's iconic shoemakers directly in the spotlight. Speaking at a press conference in Milan, Della Valle emphasized the gravity of the situation, stating, "'Made in Italy' represents one of our country's areas of excellence and... if someone questions it (even) slightly, this causes enormous damage." He highlighted that "Made in Italy" serves as an internationally recognized shorthand for the country's premium exports and high-quality goods, embodying craftsmanship and distinction.

In response to the growing legal scrutiny, Della Valle advocated for legislative reforms. He called for new laws that would equip "Italian regulatory bodies with all the tools needed to carry out thorough inspections." Simultaneously, he stressed the importance of allowing brands to "work without being judged on the basis of often completely unfounded accusations," seeking a balance between rigorous oversight and protection against speculative claims that could unjustly harm reputations and operations.

Prosecutors' allegations against Tod's suggest that the company "culpably failed" to adequately oversee its suppliers, including two directly contracted entities, with the aim of pursuing higher profits. While Tod's maintains that it complies with all relevant laws and regulations, the broader context reveals a pattern: five other luxury brands in Italy have already been placed under judicial administration for similar reasons since the beginning of last year. This indicates a wider crackdown on alleged ethical and labour transgressions within the industry's supply networks.

Despite these developments, Della Valle firmly asserted that the current probes involve only a small number of isolated cases when compared to the vast majority of companies that diligently respect the established rules and ethical guidelines. He also shed light on the inherent complexities of the luxury fashion supply chain, where brands often engage primary suppliers who, in turn, subcontract work to multiple other companies. Due to this multi-tiered structure, Della Valle contended that monitoring the *entire* supply chain end-to-end "is not possible" for brands, posing a significant challenge in ensuring full oversight across all operational layers.