Dolce & Gabbana Seeks to Raise Cash in Exchange for Debt Waiver

Dolce & Gabbana said it was granted the waiver until March 31 2028 in exchange for completing a series of so-called extraordinary corporate transactions by the end of June 2027 to provide liquidity for the group, according to its latest publicly available accounts.

The company, which controls the fashion unit Dolce & Gabbana as well as the beauty division Dolce & Gabbana Beauty also agreed to keep its debts below a threshold equivalent to three times profits, starting from March 31, 2028, the same document showed.

The transactions are “in an advanced negotiations stage” Dolce & Gabbana said in a separate earnings filing. The company was considering selling some properties, including in Milan’s city centre, and then leasing them back to free up cash, people familiar with the matter said earlier this year.

In its fiscal year ended March 31, Dolce & Gabbana Holding’s debt rose to around €465 million ($542 million) from about €380 million in the previous period, the first document showed. Revenue slightly contracted to €1.86 billion from €1.9 billion, while earnings before interest, taxes, depreciation and amortisation fell to around €10 million from about €30 million.

In April, Dolce & Gabbana received €150 million from EssilorLuxottica SA after extending an existing licensing contract until 2050.

A representative for Dolce & Gabbana declined to comment.

Dolce & Gabbana has revamped its management in recent months as it negotiates with lenders. Co-founder Stefano Gabbana stepped down as chairman this year, and he’s weighing options for his share of about 40 percent in the firm, Bloomberg reported. The resignation has no impact on his creative activity, the company said in April.

The fashion house also appointed former Gucci boss Stefano Cantino as co-chief executive officer alongside Alfonso Dolce, the brother of co-founder Domenico.

Gabbana and Domenico Dolce founded the company in 1985 and quickly built it into one of the world’s most recognisable fashion brands. Although the couple split more than 20 years ago, they remained business partners and co-own a holding entity that controls 80 percent of the firm.

The remainder is separately held by Domenico, Alfonso and their sister Dorotea.

By Antonio Vanuzzo and Giulia Morpurgo

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