Italian luxury fashion house Dolce & Gabbana has confirmed that co-founder Stefano Gabbana stepped down from his board roles, effective January 1. Alfonso Dolce, brother of co-founder Domenico Dolce, has been appointed as the new chair. Dolce & Gabbana is an Italian luxury fashion house renowned for its high-end clothing, accessories, and beauty products, designing and distributing luxury goods globally. The group emphasised that Gabbana’s resignation would not impact his ongoing creative activities for the brand, with both founders continuing to oversee its creative direction.
This leadership change coincides with significant financial discussions. Reports suggest Gabbana was considering options for his roughly 40% stake ahead of debt negotiations. Lenders are reportedly seeking a cash injection of up to 150 million euros as part of a broader 450 million euro ($786 million AUD) debt refinancing. Advised by Rothschild, the company is exploring various ways to raise fresh capital, including potential asset disposals such as real estate. A substantial portion of new funds is expected to come from a recent extension of its eyewear licence agreement with Franco-Italian giant Essilorluxottica through 2050.
Operating within challenging market conditions, the family-owned group recorded a net loss of 143 million euros for the year to March 31, despite revenue rising 4% to 1.9 billion euros. The company, which brought its beauty business in-house in 2022, has previously indicated that it had not ruled out the possibility of a minority investor or a stock market listing to secure capital. Further executive movements include former Gucci CEO Stefano Cantino joining in an unspecified managerial role, following the earlier departure of Managing Director Fedele Usai. Dolce & Gabbana declined to comment, citing ongoing negotiations with its banking partners.
