Dolce & Gabbana chairman Stefano Gabbana steps down amid debt talks

Stefano Gabbana has stepped down as chairman of Dolce & Gabbana as the company prepares for a new round of debt negotiations with lenders, according to a report by Bloomberg.

The resignation, which took place in December and was disclosed in an Italian corporate filing, marks a shift in governance at the privately held fashion group at a time of mounting financial pressure.

Leadership change amid restructuring

Gabbana, 63, who co-founded the brand with Domenico Dolce, stepped down from his corporate roles as part of what the company described as a “natural evolution” of its organisational structure.

According to Bloomberg, Alfonso Dolce, the current chief executive and brother of Domenico Dolce, assumed the role of chairman in January following the transition.

The company said Gabbana’s exit from governance roles would not affect his involvement in creative activities.

Debt talks and funding pressure

The leadership shift comes as Dolce & Gabbana enters a fresh phase of negotiations with its lenders. Bloomberg reported that creditors are seeking an injection of up to €150 million as part of a broader refinancing of approximately €450 million in debt.

People familiar with the matter, cited by Bloomberg, said Gabbana is also exploring options for his roughly 40% stake in the business as part of these discussions.

The company is considering measures such as asset disposals and licence renewals to raise funds, while negotiations with banks remain ongoing.

Industry headwinds weigh on performance

The luxury fashion house has faced sustained pressure from a broader slowdown in global luxury demand, compounded by geopolitical uncertainty linked to tensions in Iran, according to Bloomberg.

These factors have affected earnings and increased the challenge of meeting debt obligations, prompting the need for refinancing and strategic adjustments.

The company generated around €2 billion in revenue in the year ending March 2025, as reported by Bloomberg.

Strategic continuity and next steps

Despite governance changes, Dolce & Gabbana has reiterated its commitment to maintaining creative continuity while navigating financial restructuring.

Bloomberg also reported that the company is being advised by Rothschild & Co and may appoint former Gucci executive Stefano Cantino to a senior management role, signalling further leadership evolution.

As debt negotiations continue, the company’s ability to secure fresh funding and stabilise operations will be closely watched, particularly as independent luxury brands face increasing pressure to adapt to a more volatile market environment.