Stefano Gabbana has stepped down as Dolce & Gabbana chairman but will keep a creative role

MILAN (AP) — Stefano Gabbana has stepped down as chairman of the Italian fashion house that he co-founded with Domenico Dolce, but will continue in his creative role, the company said on Friday.

Gabbana’s resignation from oversight roles was effective Jan. 1. Alfonso Dolce, Domenico Dolce’s brother, was named chairman later that month, according to the company’s filing with the Milan chamber of commerce.

Dolce & Gabbana in a statement called the move “a natural evolution of its organizational structure and governance.’’

The news was first reported by Bloomberg, which cited sources saying that Gabbana, 63, was considering options to exit his 40% stake in the 41-year-old fashion house.

Dolce & Gabbana’s lenders are up to 150 million euros in new funding as part of a broader refinancing of the fashion house’s 450 million euros ($525.7 million) of debt, Bloomberg reported. It added that the company was considering the disposal of real estate and the renewal of ⁠licences to raise money.

Dolce & Gabbana declined comment on the company’s debt, citing talks with bankers.

Gabbana was present at the last runway show in February, with their longtime muse Madonna as a front-row guest. Both he and Dolce greeted Madonna personally at her seat after the show and brought her backstage.

Meryl Streep and Stanley Tucci attended the Dolce & Gabbana runway in character during filming for “The Devil Wears Prada” sequel last September.

Dolce & Gabbana made its Milan runway debut in 1985, with a focus on Sicilian craftsmanship that has been a touchstone throughout the years for the designers. The designers split as a couple some 20 years ago, but have continued to work closely on the creative side.

The brand spiked in popularity in the 1990s with cone bras, corset looks and perfectly tailored black dresses. The designers have often drawn on Dolce’s Sicilian roots, with sexy sheer materials and netting for menswear, along with bright floral and fruit prints and jewelry with oversized crosses.

Over the years, they have expanded into fragrance, home goods and watches, among other fashion-adjacent categories.

Luxury sector analyst Luca Solca, at the Bernstein global equity research firm, said he did not anticipate major changes at the fashion house as long as Gabbana remains on in a creative role.

“Stefano Gabbana was the root cause of the social media disaster of Dolce & Gabbana in China a few years ago,” he said, refering to the cancellation of a 2018 show in Shanghai due to a backlash after the design house released campaign videos that were criticized as culturally insensitive to Chinese people.

“If Stefano Gabbana left, this could be presented as a (belated) atonement from that incident,” Soca added.