Australian fashion retailer Cue Clothing Co has entered voluntary administration after efforts to find a buyer fell short.
Staff across Australia and New Zealand were informed of the move on Tuesday afternoon, with receivers also appointed to oversee the business.
Receivership allows one or more secured creditors to pursue repayment by taking control of a company’s assets and arranging their sale.
Unlike liquidation, the process does not automatically shut down the company. Cue will continue trading while its assets are assessed, leaving open the possibility of a return to normal operations if debts can be addressed.
Cue operated more than 200 stores at its peak. The retailer now has 51 outlets — 42 full-price stores and nine discount locations — all of which are expected to remain open as the sale process gets under way.
Kate Warwick and Vaughan Strawbridge, from FTI Consulting, have been appointed receivers and managers.
Duncan Clubb and Shaun McKinnon of BDO are acting as the company’s voluntary administrators.
UK-based investment firm Hilco Capital, which specialises in restructuring troubled businesses, acquired Cue Clothing from the Levis family in April last year. The purchase followed an operating loss of $4.6 million.
Cue’s 51 stores are expected to keep trading as the company launches its sale process
Cue and sister label Veronika Maine entered voluntary administration this week
Rod Levis founded Cue in Sydney in 1968. The business and its sister label, Veronika Maine, stayed under family ownership until Hilco bought them for an undisclosed sum.
FTI Consulting said Cue’s progress during the last financial year was not enough to offset the burden of its overhead costs.
“The receivers are continuing to trade the business while they undertake an assessment of the business and restructuring options available,” the firm said.
“A sale process seeking offers for the business as a going concern will also commence immediately, seeking to secure the future of the brands, a pathway to profitability and ongoing employment for staff.”
A Hilco spokesperson described the administration as a “disappointing outcome, but the only available course of action given the circumstances”.
‘Our intention has always been to fund Cue to restore growth and profitability,’ the spokesman told AFR.
‘This appointment will now provide an opportunity for a new owner to carry the Cue and Veronika Maine brands forward.’
Cue’s sales reached $103.2million in the last financial year, compared to $98million the year prior. Its losses dropped to $5.1million from $14.1million in the same period.
The iconic fashion retailer was founded in 1968 by Rod Levis
Cue and Veronika Maine sold more upmarket pieces than fast fashion retailers, like Zara and H&M, but below luxury designers (pictured is the 2023 Cue fashion show)
Cue had a major stake in Dion Lee, which fell into administration after after Cue withdrew its investment in 2024 but was bought by American clothing giant Revolve Group.
The arrival of ultra-fast fashion giants like Shein and Temu in recent years has disrupted the Australian retail landscape.
Cue and Veronika Maine are more upmarket than regular fast fashion retailers – such as H&M and Zara that have also dominated the market in recent years – but below luxury designers.
They cater to professional women and largely focus on high quality workwear.
‘Hilco Capital has made the decision to appoint Receivers and Managers to Cue and Veronika Maine after a difficult period,’ a spokesperson told Daily Mail.
‘It is a disappointing outcome, but the only available course of action given the circumstances.
‘Our intention has always been to fund Cue to restore growth and profitability. This appointment will now provide an opportunity for a new owner to carry the Cue and Veronika Maine brands forward.
‘We want to acknowledge the efforts of all the staff during a challenging period and thank them for their continuing support of these great Australian fashion brands.’
The brand was bought by an asset investor last year and has improved revenue while cutting losses (pictured is a Cue fashion show in 2023)
Hilco poached Melanie Remai from rival womenswear company Trenery – owned by Country Road Group – to oversee Cue Clothing Co as chief executive in August 2025.
She resigned last week after only 18 months in the role. Chief financial officer Josephine Barbaro also resigned in the same week.
The company’s loans have been refinanced through Hilco on terms that extend to July 2027.
Hilco Capital had listed Cue Clothing for sale through FTI Consulting in August.
It claimed Cue’s sales were expected to reach $128.7million in the 2026 financial year.
– READ MORE: Major Aussie caravan business collapses blaming cheap imports
Join the discussion
Are overseas fast fashion giants destroying Australia’s homegrown retail industry?
