Stefano Gabbana (left) and Domenico Dolce at the Milan Fashion Week last year. Gabbana has quit key roles at Dolce & Gabbana and was also considering options for his roughly 40% stake in ‌the company ahead of ⁠debt negotiations with banks.

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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 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.

Dolce & Gabbana’s lenders are seeking an injection of up to 150 million euros in fresh funds as part of a broader refinancing of 450 million euros (R8.6 billion) of debt, Bloomberg reported, citing sources. The company, advised by Rothschild, is exploring ways to raise fresh money, including asset disposals such as real estate and the renewal of licences, a source close to the matter said, confirming the Bloomberg report.

Dolce & Gabbana declined to comment as "negotiations with banks are still ongoing".

The family-owned Italian luxury group, which brought its beauty business in-house in ⁠2022 and committed substantial resources in developing the business, 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 founded the company in 1985 and they ⁠are still in charge of creative direction.

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.