Australian surf- and ski-wear company Rip Curl is under fire after an investigation found some of its clothes were made under harsh conditions in North Korea.

According to a report by the Sydney Morning Herald, the popular brand’s winter 2015 line of ski clothing was manufactured under “slave-like conditions” at a factory near the North Korean capital of Pyongyang, despite being labeled “Made in China.”

North Korea is notorious for its harsh labor conditions, including long hours and minimal pay.

Rip Curl blamed a subcontractor, and said in a statement it “takes its social compliance obligations seriously.”

“We were aware of this issue, which related to our Winter 2015 Mountain-wear range, but only became aware of it after the production was complete and had been shipped to our retail customers,” Rip Curl chief financial officer Tony Roberts said in a statement.

“This was a case of a supplier diverting part of their production order to an unauthorised subcontractor, with the production done from an unauthorised factory, in an unauthorised country, without our knowledge or consent, in clear breach of our supplier terms and policies.”

“We do not approve or authorise any production of Rip Curl products out of North Korea.”

Rip Curl, a privately held company based in Torquay, Australia, posted a 25% gain in net profit in fiscal 2015.

Anti-poverty group Oxfam Australia put the responsibility squarely on the company.

“Rip Curl has no excuse for not tracking clothing produced within its own supplier factories,” CEO Dr. Helen Szoke said in a statement. “Companies are responsible for human rights abuses within their businesses – not only morally but also within United Nations guidelines on the responsibilities of businesses when it comes to human rights.”