Dolce & Gabbana co-founder steps down as chair

Stefano Gabbana, co-founder of Dolce & Gabbana, has stepped down as chair of the company he established in 1985 alongside Domenico Dolce.

The move comes as the luxury fashion house navigates mounting financial challenges, including a debt burden of approximately €450m (£391m/$528m), alongside a broader slowdown in the global luxury retail market. Reduced consumer spending—particularly in China—has added pressure on high-end brands.

Despite stepping down from the chairmanship, Gabbana will remain deeply involved in the creative direction of the brand, continuing his longstanding collaboration with Dolce in designing collections and maintaining the identity that has defined the label for decades.

Leadership responsibilities have transitioned to Alfonso Dolce, brother of Domenico Dolce and the company’s chief executive, who officially assumed the role of chair on 1 January. Corporate filings indicate that Gabbana communicated his decision internally in December.

In response to shifting market dynamics, Dolce & Gabbana has been expanding into new sectors, including hospitality and home furnishings. Its recent offerings feature high-end lifestyle pieces such as a leopard-print porcelain vase priced at £1,084, reflecting an effort to diversify revenue streams.

Industry observers highlight the scale of the company’s financial obligations. Fashion expert Priya Raj noted that the brand remains privately owned, with both Gabbana and Domenico Dolce each holding significant 40% stakes—leaving open questions about future ownership structures.

Reports in March indicated that the company had engaged financial advisers and entered discussions with creditors as it seeks to manage its debt. In a statement on Friday, the firm confirmed that negotiations with banks are ongoing, declining further comment at this stage.

Despite financial headwinds and past controversies—including criticism earlier this year during Milan Fashion Week over a predominantly white model cast, which drew backlash from figures like Bella Hadid—the brand has demonstrated resilience. Analysts note that its distinctive aesthetic continues to attract a loyal global following, even as industry trends evolve.