Stefano Gabbana has stepped down as Chairman of Dolce & Gabbana's Board of Directors

Stefano Gabbana, who founded the legendary fashion house Dolce & Gabbana together with Domenico Dolce, has resigned as chairman of the board of directors of the company. The reshuffle took place back in December, but it was not officially announced, Bloomberg reports citing the company's corporate documents. The resignation with reference to the same documents confirms Reuters. Stefano's place was taken in January by Alfonso Dolce, Domenico's brother and current CEO of the company.

Gabbana's departure from his leadership position may be a harbinger of larger changes. Stefano Gabbana, 63, is considering selling his stake (about 40% of Dolce & Gabbana shares) ahead of a new round of negotiations with creditors on repayment of the company's debt, Bloomberg sources say. Dolce & Gabbana shares are privately owned and are not listed on the stock exchange.

According to Bloomberg's interlocutors, Dolce & Gabbana personnel renewal will not be limited to the departure of the co-founder: Stefano Cantino, former CEO of Gucci, is planned to be appointed to one of the key positions in the top management of the company. Officially about his transfer to Dolce & Gabbana may be announced next week, Bloomberg writes.

The company itself declined to comment. Stefano Gabbana ignored journalists' requests, Cantino also preferred to refrain from talking to the press.

Now Dolce & Gabbana is in a vulnerable position, notes Bloomberg. The prolonged crisis in the luxury market and geopolitical instability amid the war in the Middle East have negatively affected the company's profits, made it difficult to fulfill the terms of its debt obligations and forced the brand to start a new round of negotiations with creditor banks.

According to Bloomberg's sources, Dolce & Gabbana's creditors expect to receive up to €150 million ($176 million) in fresh capital - part of a massive €450 million program to refinance the company's debt. To find that money, the fashion house is considering selling real estate and extending licensing contracts, Bloomberg's sources said.

Amid the global slump in demand for luxury goods, Italian fashion houses are increasingly opening up to mergers and attracting fresh capital from investors, Bloomberg writes. For example, Prada acquired Gianni Versace late last year, and George Armani ordered in a secret will that his heirs sell a 15 percent stake in the company within 18 months or take the fashion house public.

Dolce & Gabbana, against this backdrop, has sought to maintain its independence by expanding its beauty, real estate and hotel businesses. As part of an agreement with banks reached last year, the company refinanced its debt through February 2030 and raised another €150 million in debt to finance expansion. The company's total revenue for the year ending March 2025 was about €2 billion.

The Dolce & Gabbana brand was founded in 1985. The holding company is jointly owned by Stefano Gabbana and Domenico Dolce (together they control 80% of the company).

This article was AI-translated and verified by a human editor