A major leadership change is taking place at one of Italy’s most storied fashion empires. Stefano Gabbanathe 63-year-old co-founder of Dolce & Gabbana, has officially resigned from his position as chairman of the company. The dismissal took place in December 2025, according to Italian company documents, but did not come to public attention until April 2026. The timing is important as the brand prepares for a crucial round of debt negotiations with its creditors. Gabbana is reportedly considering alternative options to his approximately 40% stake in the luxury house.
This is one half of the founding duo behind a brand synonymous with Italian glamor and daring maximalism, taking a step back from corporate duties. Gabbana and his former romantic partner, Domenico Dolcelaunched their eponymous label in 1985. Four decades later, their scrappy Milanese startup has grown into a global enterprise spanning ready-to-wear, accessories, beauty, perfumes and homewares. But beneath the shiny surface, financial pressure is mounting. The company is currently struggling with approximately €450 million in debt and is preparing to negotiate restructuring options with banks.
Leadership stays within the family
Stefano Gabbana resigned as chairman of Dolce & Gabbana and is considering options for his stake in the Italian fashion company ahead of negotiations with his bank lenders. https://t.co/DNxNI6HKEm
— Bloomberg (@company) April 9, 2026
Alfonso Dolcebrother of co-founder Domenico Dolce and the company’s current CEO, has taken on the role of chairman. He took over in January 2026, keeping leadership firmly within the circle of the founding family. This transition represents a concentration of power, as Alfonso now holds both the CEO and chairman positions.
In traditional corporate governance models, separating these roles provides checks and balances. Combining these can streamline decision-making, but may raise questions for creditors seeking more distributed supervision. However, for a family-controlled luxury brand dealing with complex debt restructurings, this arrangement provides continuity during a particularly challenging period.
Former Gucci CEO was rumored to be joining
D&G, Stefano Gabbana read the president. Arruolato l’ex Gucci Stefano Cantino https://t.co/IB92gv9sAX
— Republic (@repubblica) April 9, 2026
The company is reportedly set to appoint Gucci’s former CEO Stefano Cantino in a top management role, although this has not been officially confirmed. If the appointment materialises, it would mark a significant shift towards bringing external expertise into what has traditionally been an isolated operation.
Cantino’s potential arrival could signal a recognition that the brand needs an experienced outside perspective to meet current challenges. His background in luxury conglomerate management could be valuable, although the strategies that worked at Gucci would likely require substantial adjustments to fit Dolce & Gabbana’s independent ownership structure.
The challenge of debt restructuring
Last year, the brand negotiated a refinancing of approximately €300 million in debt through February 2030. As part of those talks, the company secured an additional €150 million from lenders to support its expansion into the beauty and real estate sectors. The company’s lenders are now seeking an injection of up to €150 million in new funds as part of a wider refinancing of €450 million of debt.
The company is considering selling real estate and renewing licenses to raise the money. Bloomberg News reported last month that the company is being advised by Rothschild & Co. This multifaceted approach reflects the complexity of the financial situation the luxury house faces as it attempts to maintain independence in a consolidating industry.
Beauty Division: A Strategic Focus
The company’s management is betting that its beauty business will be crucial if it wants to remain an independent company in the fast-changing luxury industry. This strategic focus makes business sense because beauty products typically offer higher profit margins and more consistent revenue streams than seasonal fashion collections.
The fragrance and cosmetics sector has proven resilient, even during economic recessions. A signature scent can generate revenue for decades with relatively modest ongoing marketing investments compared to the constant cycle of designing, producing and promoting new clothing collections each season.
Still present on the runway
Despite stepping down from his role as chairman in December, Gabbana remained highly visible during the brand’s Milan Fashion Week show on February 28, 2026. He and Domenico Dolce walked the catwalk together after presenting the fall/winter 2026-2027 women’s collection and hugged Madonna backstage after the show.
Madonna made a star appearance in the front row of Dolce & Gabbana at the show, sitting next to Vogue’s Anna Wintour. After the presentation, the designers walked across the catwalk to hug the Queen of Pop and then escorted her backstage. The spectacle showed that despite corporate restructuring behind the scenes, the brand’s cultural cachet and celebrity connections remain intact.
What happens to the 40% stake?
The co-founder is considering options for his stake in the Italian fashion company ahead of negotiations with his bank lenders. This aspect of the story has significant implications for the future ownership structure and strategic direction of the brand.
Several scenarios could unfold. Gabbana could retain his ownership while withdrawing from operational involvement entirely. Alternatively, a partial or full sale of its stake could attract outside investors with fresh capital. Private equity firms have shown increasing interest in heritage luxury brands, especially brands with strong brand recognition but operational challenges that require restructuring expertise.
However, the current luxury market environment complicates any transaction. Valuations have softened as global consumer spending patterns change and younger demographics exhibit different purchasing behavior than previous generations of luxury consumers.
Featured image: Stefano Rellandini/Getty Images
