Dolce & Gabbana said on Friday its co-founder Stefano Gabbana stepped down from his roles at the Italian fashion house and its controlling holding company with effect from January 1, confirming previous reports that he resigned as chair.
"The resignations have no impact on the creative activities carried out for the group by Stefano Gabbana," the group said in a statement.
Chief Executive Alfonso Dolce, the brother of co-founder Domenico Dolce, was appointed as the new chair, according to a company filing to the Milan Chamber of Commerce.
Gabbana, 63, took his customary bow at the fashion house's last runway show in February flanked by Dolce, with the designers' longtime muse pop superstar Madonna as a front-row guest.
News of his resignation was first reported by Bloomberg, which said Gabbana was also considering options for his roughly 40% stake in the company ahead of debt negotiations with banks.
NEGOTIATIONS WITH BANKS
Dolce & Gabbana's lenders are seeking a cash injection of up to 150 million euros at the company, as part of a broader 450 million euro ($526 million) debt refinancing, Bloomberg reported, citing sources.
The company, advised by Rothschild, is exploring ways to raise fresh money, including asset disposals such as real estate, a source close to the matter said, confirming the Bloomberg report.
The source said that a big part of the new funds will come from a recent extension through 2050 of the eyewear licence agreement with Franco-Italian giant Essilorluxottica.
Dolce & Gabbana declined to comment saying "negotiations with banks are still ongoing".
The family-owned Italian luxury group, which brought its beauty business in-house in 2022 committing substantial resources to develop it, is grappling with challenging market conditions.
In the past it did not rule out the possibility of a minority investor or stock market listing.
Domenico Dolce and Stefano Gabbana are still in charge of creative direction at the company they founded in 1985.
According to the company filing, Gabbana informed the group in December that he intended to step down as chair effective January 1.
This change at the top was not the only one.
Former Gucci CEO Stefano Cantino is joining Dolce & Gabbana in an unspecified managerial role, according to two sources familiar with the matter.
Managing Director Fedele Usai left Dolce & Gabbana earlier this year to join French luxury group Kering as chief marketing officer.
Cantino was not immediately available for comment.
In the year to March 31, the group's revenue rose 4% to 1.9 billion euros, with a net loss of 143 million euros, a filing showed.
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