What looks like fabulous may not have a full bank account. Dolce & Gabbana, the kings of spectacular fashion shows who took runway presentations to near circus level faced the music. In a shocking Friday announcement Stefano Gabbana resigned as head of the brand he co-founded in 1985 with Domenico Dolce in Milan.
Madonna’s favorite designers appeared to have it all. Front rows filled VIP’s. Superstars begged to wear their pieces for concerts, music videos, magazine spreads. During fashion week, D&G’s fast moving models strutted in embroidered looks and statement prints bling blended with sensuality inspired from Sicily.
Today it is a different dress. Modern economics caught up with the 41-year-old label. As the world confronts geopolitical crisis, buyers longing for luxury goods waned faced with soaring gas prices.
The 450 euro million standing debt alarms got too loud to ignore. As the bottom line became more affected by the war’s effects, creditors made their move. Early in the April Bloomberg reported on lender talks concerning structuring the heavy liability. The fact D&G held such a high obligation was jaw dropping. All the “ moda alta fabulousness” financed on credit.
Did the headlines overtake the money discussions? The luxurious style designers got hit by a new global reality. Shoppers are cutting back on aspirations in the short and medium terms, particularly in Asia, where the gas squeeze hit first.
Could Dolce & Gabbana close for good? Will there be take over? All the tote handbags and poplin shirts are on the table.