Dolce & Gabbana Co-Founder Stefano Gabbana Resigns as Chair Amid Debt Negotiations
Stefano Gabbana has resigned as chairman of Dolce & Gabbana, effective January 1, marking a significant shift in the luxury fashion house's governance. The company described the move as part of a natural organizational evolution, asserting that Gabbana’s creative role remains unaffected. Alfonso Dolce, CEO and brother of co-founder Domenico Dolce, has assumed the chairmanship. This leadership change occurs as the brand navigates challenging financial conditions, including €450 million in bank debt and ongoing negotiations with lenders. Reports indicate Gabbana is considering options for his 40% stake in the company. To assist with these critical debt talks, D&G appointed Rothschild & Co as its financial adviser. The resignation also follows a period of market slump exacerbated by geopolitical uncertainties affecting key regions like the Middle East. Additionally, the brand has faced recent controversies, including criticism over an all-white model cast at its menswear show. Despite these challenges and the internal restructuring, which includes former Gucci CEO Stefano Cantino joining top management, the founders recently presented a united front at Milan Fashion Week, emphasizing their commitment to the brand's distinctive identity.
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Dolce & Gabbana Co-Founder Stefano Gabbana Resigns as Chair Amid Debt Negotiations
Stefano Gabbana has resigned as chairman of Dolce & Gabbana, effective January 1, marking a significant shift in the luxury fashion house's governance. The company described the move as part of a natural organizational evolution, asserting that Gabbana’s creative role remains unaffected. Alfonso Dolce, CEO and brother of co-founder Domenico Dolce, has assumed the chairmanship. This leadership change occurs as the brand navigates challenging financial conditions, including €450 million in bank debt and ongoing negotiations with lenders. Reports indicate Gabbana is considering options for his 40% stake in the company. To assist with these critical debt talks, D&G appointed Rothschild & Co as its financial adviser. The resignation also follows a period of market slump exacerbated by geopolitical uncertainties affecting key regions like the Middle East. Additionally, the brand has faced recent controversies, including criticism over an all-white model cast at its menswear show. Despite these challenges and the internal restructuring, which includes former Gucci CEO Stefano Cantino joining top management, the founders recently presented a united front at Milan Fashion Week, emphasizing their commitment to the brand's distinctive identity.
The Guardian