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

The Italian luxury brand 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 D&G’s chief executive, took over the role in January, according to Bloomberg, which first reported Gabbana’s resignation.

Gabbana 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, founded in 1985, 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 the company was reported to have 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 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.

Gabbana, 63, was born in Milan and, after studying graphic design, met Dolce while they were working for the designer Giorgio Correggiari.

They became a couple and quickly found success with their brand, which leans heavily into a “molto sexy” Italian aesthetic complete with macho men, Sicilian mistresses and a heavy dollop of la dolce vita. Catwalk shows have featured a tiger cub, footballers and riffs on Catholic iconography.

Madonna catapulted the brand into the spotlight in 1993 when she commissioned Dolce & Gabbana to create the costumes for her Girlie show tour. Gabbana and Dolce, who separated romantically in 2004, were prolific and quickly expanding the initial offering of womenswear to span menswear, lingerie, sunglasses, watches, fragrance and makeup. By 2009, the brand reported a turnover of €1bn.

However, the Italian house has been embroiled in various controversies over the past 15 years, including accusations of racism and homophobia.

In 2012, it was accused of romanticising slavery after showcasing earrings with what appeared to be Blackamoor statues. The following year, images of Gabbana at a Disco Africa-themed Halloween party circulated where some of the guests appeared in blackface.

In 2015 there were calls for a boycott after Dolce referred to children born via IVF as “synthetic babies” and said he opposed the rights of gay parents to adopt. He later issued an apology for his remarks.

In 2018, the company faced a backlash over social media adverts featuring images of a Chinese model trying to eat pasta and cannoli with chopsticks. In response, Gabbana allegedly sent a direct message on Instagram to a user who had criticised the ad, 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. However, the row led to the brand being pulled from most Chinese owned e-commerce sites and cancellation of a show in Shanghai, reportedly costing the company a third of its business.

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

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”.