The Dolce & Gabbana tax issue… Let’s start by saying we reported last month on the latest news that Dolce & Gabbana could possibly be facing time in prison because of accusations that they participated in with evading tax in Italy. Those were the facts. The two, and other members of the company board, were found guilty in a court of law. There was no arguing one way or another as this was about as straight forward as you can get with reporting a verdict. That all being said, I’ve avoided writing further because of a personal love for the brand, however I cannot ignore that this is “fashion news” and as such must be shared. It’s hard to write a piece and be “Switzerland” when it comes to a brand you have worked so closely with in the past. Whether they are guilty or not guilty, a verdict was passed down by officials who have considered the facts and the story has progressed from where we last left off.
The world, since the verdict, has awaited next steps with both Domenico Dolce and Stefano Gabbana. And earlier this week we had our first indication that things were not looking good. In an effort to strike against the verdict, Dolce & Gabbana temporarily closed their Milan stores. While they have now reopened, there is a definite air around the brand that is not only one of mystery, but also great sadness. I am in no position to say what they did was right or wrong, or whether the duo even knew what it was that was happening exactly, but I can only imagine what it must be like to see your brand torn to shreds in the press after working for so many decades to build up a well respected fashion house.
So what’s next? Well of course many are asking the big question as to whether or not the duo will show at Milan Fashion Week in a few months time. It has been argued that they should not be permitted, but there is the more pressing matter of cash flow. Dolce & Gabbana have gone public with the fact that the company itself will in fact fold if they are made to pay the £300 million fine for tax evasion. That won’t just mean no collection for Spring Summer 2014, it will mean no further collections to speak of at all.
We will continue to monitor and report on the situation at hand. For the time being, however, we do hope that some sort of resolution is found and that the brand will be able to continue and move forward with Domenico and Stefano at the helm.