Australian Fashion Retailer Cue Plunges into Administration, Closes Stores
Receivers are seeking a buyer for the iconic brand, which has struggled with high operating costs despite recent sales improvements.
Cue Clothing Co. has entered voluntary administration, leading to the closure of five stores across Australia. FTI Consulting partners Kate Warwick and Vaughan Strawbridge have been appointed as receivers to manage the three companies within the group.
The affected stores include Woden Cue, Parramatta Cue, Mosman Veronika Maine, Melbourne Central Cue, and Armadale Cue. While the closures are a cost-cutting measure, receivers stated that no concessions are included and staff will be redeployed where possible.
Cue and its sister brand, Veronika Maine, operate a total of 46 stores across Australia and New Zealand. Despite the immediate store closures, the receivers have reported significant interest from potential buyers eager to acquire the fashion retailer. The businesses will continue to trade as going concerns while a sale process is underway, with expressions of interest expected in early October.
Founded in Sydney in 1968 by Rod Levis, Cue established a strong reputation for quality womenswear. The brand experienced significant growth, including a presence in Myer department stores and the launch of its sister label Veronika Maine in 1999. After more than five decades under family ownership, the Levis family sold the business to Hilco Capital in April 2025.
However, the company continued to face financial challenges. Despite sales exceeding $103 million in its latest financial year, a loss of $5.1 million was recorded, largely attributed to the substantial costs associated with maintaining its extensive retail network. A retail expert noted that while brand heritage is valuable, it is no longer sufficient on its own in the current retail landscape. Consumers today seek a clear value proposition, whether through innovation, quality, sustainability, or problem-solving, making it crucial for brands to articulate why they matter beyond just the product.
The receivers remain optimistic about the brands' future, citing strong brand recognition and customer loyalty as key assets that potential buyers will likely value. The critical question moving forward will be determining a business model and store footprint that aligns with the contemporary retail environment.