Cue Clothing Co and its sister brand, Veronika Maine, have collapsed into voluntary administration after failing to secure a buyer, a move that places 51 stores and hundreds of jobs in jeopardy. Employees across Australia and New Zealand were informed Tuesday afternoon that the company had entered voluntary administration, and receivers have been appointed.
Under receivership, secured creditors attempt to recover debts by selling the company's assets. This differs from liquidation in that the company remains operational, with the possibility of a return to business once assets are sold and debts are settled. Cue's 51 stores, comprising 42 full-price shops and nine discount outlets, are expected to remain open as the sale process begins.
FTI Consulting's Kate Warwick and Vaughan Strawbridge have been appointed as receivers and managers. British asset investor Hilco Capital, which specializes in turning around struggling businesses, had purchased Cue Clothing from the Levis family in April of the previous year. The Levis family had owned the brand, founded by Rod Levis in Sydney in 1968, along with its sister brand Veronika Maine, until the sale to Hilco for an undisclosed sum.
FTI stated that while Cue Clothing saw improvements in the last financial year, these were insufficient to offset overhead costs. The receivers intend to continue trading the business while assessing its operations and exploring restructuring options. A sale process will commence immediately to find offers for the business as a going concern, aiming to secure the future of the brands, a path to profitability, and continued employment for staff.
Cue's sales reached $103.2 million in the last financial year, an increase from $98 million the prior year. Losses also decreased to $5.1 million from $14.1 million during the same period. The company had a significant stake in Dion Lee, which previously entered administration before being acquired by American clothing giant Revolve Group.
The Australian retail market has been significantly disrupted in recent years by the emergence of ultra-fast fashion retailers such as Shein and Temu. Cue and Veronika Maine operate in a more upmarket segment than these fast-fashion giants and also above brands like H&M and Zara, but below luxury designers. They cater primarily to professional women, with a focus on high-quality workwear.
Melanie Remai was appointed chief executive of Cue Clothing Co in August 2025, having previously worked for rival womenswear company Trenery. The company's loans were refinanced by Hilco through terms extending to July 2027. Hilco Capital had initially put Cue Clothing up for sale through FTI Consulting in August, with projected sales for the 2026 financial year estimated at $128.7 million.