Women’s retailer Cue Clothing Co has collapsed after failing to secure a buyer.
Employees across Australia and New Zealand were told on Tuesday afternoon the company had gone into voluntary administration and appointed receivers.
Under receivership, one or more secured creditors attempts to recover debts by selling assets.
It differs from liquidation in that the company is still operational and there is a chance it could return to business once the assets are sold and debt is paid.
The company’s 51 stores, including 42 full-price shops and nine discount outlets, are set to remain open as the company begins its sale process.
FTI Consulting’s Kate Warwick and Vaughan Strawbridge were appointed receivers and manager, the Courier Mail reported.
Duncan Clubb and Shaun McKinnon of BDO were appointed as voluntary administrators.
British assets investor Hilco Capital – which turns around struggling businesses – bought Cue Clothing from the Levis family in April last year after it turned an operating loss of $4.6million.
Cue and its sister brand, Veronika Maine, entered voluntary administration this week
The company’s 51 stores are set to remain operational as it begins its sale process
Rod Levis founded Cue in 1968 in Sydney and it remained in the family, alongside its sister brand Veronika Maine, until the sale to Hilco for an undisclosed amount.
FTI said in a statement that Cue Clothing’s improvements over the last financial year were ‘insufficient to mitigate the impact of overhead costs’.
‘The receivers are continuing to trade the business while they undertake an assessment of the business and restructuring options available,’ it said.
‘A sale process seeking offers for business as going concerns will also commence immediately seeking to secure the future of the brands, a pathway to profitability and ongoing employment for staff.’
A Hilco spokesman called it 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,’ he 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.
Cue and Veronika Maine sold more upmarket pieces than fast fashion retailers, like Zara and H&M, but sta below luxury designers (pictured is the 2023 Cue fashion show)
Its losses also dropped to $5.1million from $14.1million in the same period.
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 also below luxury designers.
They cater to professional women and largely focus on high quality workwear.
Hilco poached Melanie Remai from rival womenswear company Trenery to oversee Cue Clothing Co as chief executive in August 2025.
The company’s loans have also 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.
