Dolce & Gabbana co-founder steps down as chair

Dolce & Gabbana Co-Founder Steps Down as Chair

Stefano Gabbana, one of the founding figures of Dolce & Gabbana, has resigned from his position as chairman. The decision, effective 1 January, marks a shift in the company’s leadership structure. Gabbana, who co-established the iconic fashion house with Domenico Dolce in 1985, will remain as creative director, continuing his collaboration with Dolce on seasonal collections. The brand now places Domenico’s brother, Alfonso Dolce, in charge as chief executive.

Dolce & Gabbana is facing a financial challenge, with a debt of roughly €450 million. This comes amid a broader decline in the luxury retail industry, especially in key markets like China, where consumer spending has slowed. The firm’s recent efforts to expand into areas such as hospitality and furniture have introduced new product lines, including a leopard-print porcelain vase priced at £1,084. Despite these moves, the brand’s debt remains a pressing issue.

Filings reveal that Gabbana informed the company of his resignation in December. In March, reports indicated the firm had engaged a financial advisor to address its debt. As of Friday, the company stated that discussions with creditors are still ongoing, and no formal updates have been issued. “It’s no secret that the brand is in significant debt,” said fashion analyst Priya Raj. “The brand is privately owned, and Stefano Gabbana holds a 40% stake, as does Domenico Mario Assunto Dolce. It’s unclear how this will affect the company’s future direction.”

“The problem isn’t with the designs at all, rather in the financial running of the business. They clearly need some outside help,” Raj added. She noted that a minority investor or strategic partnership is likely to be considered as the brand seeks stability.

The brand has endured criticism over the years, including a notable backlash during Milan Fashion Week’s fall/winter men’s show. A majority white model casting sparked controversy, with celebrity Bella Hadid condemning the decision on social media. Yet, Raj highlighted that Dolce & Gabbana’s distinctive Sicilian aesthetic has remained resilient. “Even in a market obsessed with quiet luxury, their sexy Sicilian vibe has outlasted trends, and they’ve built a cult following for it,” she said.

Dolce & Gabbana, based in Milan, rose to prominence through its association with major celebrities. A pivotal moment came in the 1990s when Madonna chose the brand for her “Erotica” album tour, featuring bold costumes that reinforced its provocative and sensual reputation. The firm also offered more affordable products, such as sunglasses and perfume, catering to a wider audience while maintaining its high-end identity. The company described Gabbana’s departure as “part of a natural evolution of its organisational structure and governance.”