Stefano Gabbana has resigned as chairman of Dolce & Gabbana and is considering “alternative” options for his stake in the Italian fashion company amid the company’s negotiations with debt creditors.
Gabbana, 63, who founded the fashion house with his then partner Domenico Dolce, stepped down in December, according to an Italian corporate registry. Alfonso Dolce, Domenico’s brother and current CEO, took over as president in January.
The company confirmed Gabbana’s departure from his corporate roles “as part of a natural evolution of its organizational structure and governance”.
“These resignations have absolutely no impact on the creative activities carried out by Stefano Gabbana,” he said in a statement released this Friday.
The fashion mogul is considering alternatives for his roughly 40% stake in the company, which is entering a new round of debt negotiations with creditors, according to people familiar with the matter who asked not to be identified.
The privately held company has been pressured by a prolonged slowdown in the luxury sector, worsened by uncertainty arising from the war in Iran. These setbacks have impacted profits and made it difficult to meet the conditions of its debt.
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Dolce & Gabbana’s creditors are now seeking an injection of up to €150 million ($176 million) in new funds as part of a broader refinancing of €450 million in debt, according to some of the people. The company is considering selling real estate assets and renewing licenses to raise the money, they said.
Last month, Bloomberg News reported that the company is being advised by Rothschild & Co.. On Friday, the company stated that negotiations with banks are still ongoing.
As part of the management changes, the company is also expected to appoint former Gucci CEO Stefano Cantino to a senior role, according to other sources. The hiring could be announced as early as next week, they said.
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Stefano Gabbana did not respond to messages and emails seeking comment. Cantino declined to comment.
Dolce & Gabbana was founded in 1985 and quickly became one of the most recognized fashion brands in the world with its Mediterranean-inspired aesthetic. Although the couple separated more than 20 years ago, they have remained business partners and co-own a holding company that controls 80% of the company. The remainder are held separately by Domenico Dolce, Alfonso Dolce and their sister Dorotea Dolce.
Faced with a global slowdown in demand for luxury goods, Italian fashion houses are increasingly opening up to mergers and new capital from investors. After Valentino breached clauses in its debt, its owners Kering and Mayhoola agreed last year to contribute €100 million as part of a deal with banks.
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Prada acquired Gianni Versace, while Giorgio Armani ordered in his will that his heirs sell an initial 15% stake in the company within 18 months.
Dolce & Gabbana has sought to preserve its independence by expanding its activities into the beauty, real estate and hospitality sectors. As part of a deal reached with banks last year, the company refinanced its debt until February 2030 and raised €150 million in new loans to finance its expansion. Total revenue was around €2 billion in the year ending March 2025.
