Dolce & Gabbana co-founder steps down as chair

Dolce & Gabbana co-founder steps down as chairJust nowShareSaveAdd as preferred on GoogleFaarea MasudBusiness reporterGetty ImagesStefano Gabbana, left, leaves as the firm struggles with around £400m debtThe co-founder of Dolce & Gabbana, Stefano Gabbana, has stepped down as chair of the company he set up with Domenico Dolce in 1985.The fashion house is grappling with a debt pile of around €450m (£391m) and a downturn in the luxury retail sector, with a slowdown in spending, particularly in China. Gabbana will hold onto his creative role with the company, shaping collections alongside Dolce and continuing the decades-long partnership between the pair. The 63-year-old was replaced by Domenico's brother and the firm's chief executive, Alfonso Dolce, on January 1. Filings show Gabbana told the company of his decision in December.Dolce & Gabbana has been targeting new markets including hospitality and furniture, where its latest collection offers items such as a leopard-print porcelain vase costing £1,084."It's no secret that the brand is in significant debt," fashion expert Priya Raj told the BBC. "The brand is privately owned, and Stefano Gabbana owns a significant stake, 40%, as does Domenico Mario Assunto Dolce - we're not sure what will happen to that yet".Reports in March suggested the company had appointed a financial adviser and entered talks with creditors over its debt. "With regard to the debt position, the group has no statement to make at this time, as negotiations with the banks are still ongoing," the firm said in a statement on Friday.Raj added that the firm has managed to "outlast cancel culture" after a series of controversies.The firm's last big controversy was earlier this year at the fall/winter men's show during Milan Fashion Week, where it faced a backlash for having a majority white model casting. Celebrity Bella Hadid took to social media to condemn the brand.But R...