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Stefano Gabbana left his post as chair of Dolce & Gabbana at the start of this year, the design house he co-founded with his then partner, Domenico Dolce, in 1985 has said.

The Italian luxury fashion house said Gabbana had tendered his resignation, effective as of 1 January, “as part of a natural evolution of its organisational structure and governance”.

It added: “These resignations have no impact whatsoever on the creative activities carried out by Stefano Gabbana on behalf of the group.”

Alfonso Dolce, Domenico’s brother and the current D&G chief executive, took over the role in January, according to Bloomberg, which first reported Gabbana’s resignation.

The designer is also said to be considering options for his 40% stake in the company ahead of negotiations with its bank lenders, with the former Gucci CEO Stefano Cantino taking on a top management role as part of the reshuffle.

A D&G spokesperson said: “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 Italian label has been hit by a slump in the high-end fashion market, heightened by uncertainty over the war in Iran. The Middle East is a key market for luxury brands.

In March, it was reported the company had appointed Rothschild & Co as its financial adviser as it prepared to enter talks with creditors. At the time, it had €450m (£391m) of bank debt after a round of refinancing in 2025 to implement a new growth strategy aimed at keeping D&G independent. At the time, lenders granted a temporary waiver on the terms of borrowing.

The fashion designers, who separated romantically in 2004, each hold a 40% stake in the business through a holding unit. The remainder is separately held by Domenico’s brother Alfonso and their sister Dorotea.

The Italian house has been embroiled in various controversies over Gabbana’s tenure, including accusations of racism and homophobia.

In 2012 the brand produced earrings featuring what looked like Blackamoor figures and in 2016 it named a shoe “slave sandal”. In 2015 there were calls for a boycott over the designer duo’s critical comments about gay adoption and surrogacy.

In 2018, it cancelled its Shanghai show after a backlash over social media adverts featuring images of a Chinese model trying to eat pasta and cannoli with chopsticks. In response, Stefano Gabbana allegedly sent a direct message on Instagram to a user who had criticised the advert, in which he referred to China as “ignorant dirty smelling mafia”. The brand responded that its Instagram account, and that of Gabbana, had been hacked, and the pair later issued a video apology.

Most recently, D&G’s menswear show was criticised for having a cast of all-white models.

Despite reports now suggesting that Gabbana had already resigned by that point, the business partners continued to put on a united front during the D&G womenswear show in Milan in February, which was attended by celebrities including Madonna.

Speaking to the Guardian after the show, the pair said they were not interested in following trends. Instead, they aimed to make “instantly recognisable” clothes that “when you see [them] … you think: ‘Oh, that’s Dolce & Gabbana,’ without reading the label”.