By Emilio Parodi
MILAN (Reuters) -Italian prosecutors are seeking to place shoemaker Tod's under judicial administration over alleged worker abuses in its supply chain, in the latest in a string of cases that have tainted the image of Italy's luxury brands.
Tod's would be the sixth high-end brand to undergo such supervision in Italy since the start of last year.
The news of the investigation into the supply chain, not previously disclosed, came to light from a decision by Italy's Supreme Court, reviewed
by Reuters on Wednesday, to set a date for a hearing in a dispute between Milan prosecutors and a local appeals court over the matter.
Prosecutors went to the highest national court over a decision by the Milan court which, while considering their request for judicial administration to be well founded, had ruled that territorial jurisdiction in the matter lies with the Marche region, in central Italy, which is where Tod's is based.
Prosecutors allege Tod's "culpably failed" to adequately oversee its suppliers in order to pursue higher profits. However, the company itself is not under investigation, with attention focused on cleaning up the supply chain.
In order to determine who has jurisdiction to proceed, the Supreme Court has set a hearing for 19 November.
In a statement to Reuters, Tod's said it had been informed of the hearing on November 19 but was unaware of any further details.
"We can only reiterate that Tod's complies with current legislation, including labour law, and that constant checks are carried out on the workshops we select and use, which sign agreements, before starting to work with our group, that guarantee the quality of the working environment of their employees and compliance with national labour contracts," it said.
(Reporting by Emilio ParodiAdditional reporting by Elisa AnzolinEditing by Keith Weir)
