Dolce & Gabbana is preparing to negotiate with lenders as weak global demand for luxury goods puts pressure on the fashion house's earnings and debt terms, according to people familiar with the matter. The Italian brand, known for its high-end apparel and accessories, faces mounting financial challenges as consumers cut back on discretionary spending.

This development comes amid a broader slowdown in the luxury retail sector, where brands are grappling with changing consumer preferences and economic uncertainty. Dolce & Gabbana's need to restructure debt terms suggests the company may be struggling to meet existing financial obligations, potentially signaling deeper operational issues beyond just market headwinds.

The timing is particularly sensitive as luxury retailers typically rely on strong holiday sales to bolster annual performance. With debt restructuring talks underway, investors and industry watchers will be monitoring whether Dolce & Gabbana can weather the current market conditions or if it will need to consider more drastic measures to shore up its financial position.