this transition, to emphasise that Gabbana’s creative role remained intact. The company statement even noted that the resignation had “no impact whatsoever” on the creative activities carried out by Stefano Gabbana. He was at the February show. He will presumably be at the next one. A series of self-sabotage Stefano Gabbana and Domenico Dolce, who were then romantic partners, founded Dolce & Gabbana in 1985. They were known for their deeply Sicilian design, overtly sensual and rooted in a very specific idea of Italian identity.  The brand quickly gained popularity after Madonna commissioned Dolce & Gabbana to design the costumes for her Girlie Show tour in 1993. The association elevated the label almost overnight into the kind of cultural property that luxury brands spend decades trying to manufacture. By the time revenues crossed 1 billion euros in 2009, the house had expanded across menswear, lingerie, eyewear, fragrance, watches, and accessories. No honest account of Dolce & Gabbana’s trajectory can avoid the controversies that have periodically reset the brand’s progress.  The house drew criticism in 2012 over earrings featuring what appeared to be Blackamoor statues, with accusations that the collection romanticised slavery. The following year, images circulated of Gabbana at a Halloween party where some guests appeared in blackface. Not long after the incident, Domenico Dolce, in an interview, described children born through IVF as what he called “synthetic babies” and stated opposition to gay adoption, which triggered a public backlash. Elton John led calls for a consumer boycott. Dolce later apologised, but the episode lingered. Then came 2018, and the incident that inflicted the most measurable damage the brand has ever suffered. A promotional video ahead of a planned Shanghai show depicted a Chinese model attempting to eat Italian food with chopsticks, in a sequence widely perceived as mocking and condescending. When criticism spread across Chinese social media, Gabbana was alleged to have sent a direct message on Instagram to a user who had criticised the ad, in which he referred to China in deeply offensive terms. The brand responded that both its Instagram account and Gabbana’s had been hacked. The market rejected it. D&G’s Asia-Pacific revenue share fell from 25 per cent to 22 per cent that year, the Shanghai show was cancelled, and the brand was pulled from leading Chinese e-commerce platforms during the critical Black Friday period.  Years later, the Italian luxury house was still clawing back sales lost to both the pandemic and the China advertising debacle. However, it had not fully overcome its setback in the market. Earlier this year, the brand faced significant backlash for featuring an exclusively white cast of models in its Fall/Winter 2026 menswear show. Critics and fashion commentators, including Bella Hadid, criticised the lack of diversity as “shocking” and 50 shades of white, marking a recurring issue with the brand’s representation. The financial architecture  In the year to March 31, the group’s revenue rose 4 per cent to €1.9 billion, while net loss was €143 million.  Last year, the company underwent a refinancing process that included new loans intended for expansion into the beauty sector and real estate investments. During that process, the company secured a waiver on certain debt requirements, but the current economic climate has necessitated a return to the negotiating table. Dolce & Gabbana is now preparing to negotiate a debt restructuring of approximately €450 million with its banking partners and is simultaneously seeking new funds of up to €150 million to shore up liquidity.  The company is also considering the sale of real estate assets and the renewal of licensing agreements as levers to generate cash without diluting the brand. One piece of that licensing strategy has already materialised. EssilorLuxottica and Dolce & Gabbana announced an extension of their global eyewear license agreement through 2050 for the development, production, and worldwide distribution of prescription frames and sunglasses. This partnership has been in place since 2004.  The company is advised by Rothschild & Co. in these negotiations. With Stefano Gabbana leaving, the question now is what happens to his 40 per cent stake in the company? Bloomberg reported that he is evaluating the future of that holding, in the context of a debt restructuring and a liquidity raise, which almost certainly means a sale process is either underway or being seriously contemplated. Further reading: Moncler’s succession: Why Remo Ruffini is designing power at the top.