Dolce & Gabbana co-founder Stefano Gabbana has stepped down as chair of the luxury fashion house, as the business navigates mounting debt and a tougher trading environment for the global luxury sector.
Gabbana, who co-founded the brand with Domenico Dolce in 1985, was replaced as chair by chief executive Alfonso Dolce, Domenico Dolce’s brother, on 1 January.
Company filings show he informed the business of his decision in December.
The move comes as Dolce & Gabbana faces debt of around €450m (£391m), against a backdrop of weaker luxury demand and a slowdown in consumer spending, particularly in China.
Despite stepping back from the chair role, Gabbana will remain involved creatively and will continue to shape collections alongside Dolce, maintaining the longstanding creative partnership at the heart of the brand.
The Italian fashion house has been pushing into newer categories including hospitality and homeware as it looks to diversify beyond core fashion.
Its latest furniture and interiors range includes high-end statement pieces such as a leopard-print porcelain vase priced at more than £1,000.
However, the group’s financial position has come under increasing scrutiny. Reports earlier this year suggested Dolce & Gabbana had appointed a financial adviser and entered talks with creditors over its debt pile.
In a statement, the business said it had no further comment to make on its debt position while negotiations with banks remain ongoing.
The brand said Gabbana’s departure as chair formed part of a “natural evolution” of its organisational structure and governance.
Founded in Milan, Dolce & Gabbana built its reputation on a bold, sensual aesthetic and rose to global prominence in the 1990s, helped in part by high-profile celebrity backing including Madonna, who commissioned the label to create costumes for her 1993 Girlie Show tour.
While the business has weathered shifting fashion trends and public controversy over the years, the latest leadership change signals a more pressing focus on stabilising the company’s finances as it looks to secure its next phase of growth.
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