Dolce & Gabbana could be forced to shut down.

ITALIAN premier Silvio Berlusconi has acknowledged that his centre-right party suffered defeats in his political stronghold of Milan and in the southern city of Naples — outcomes that observers say could undermine his government’s stability and his leadership.

ITALIAN prime minister Silvio Berlusconi was facing defeat in his northern power base of Milan yesterday in local elections that will raise doubts over the future of his fragile centre-right coalition government.

Premier Silvio Berlusconi suffered a heavy blow after two days of local polling across Italy, losing his stronghold Milan and the southern city of Naples, projections and partial returns showed today.