Cue Clothing and Veronika Maine Collapse Into Administration

Australian fashion retailer Cue Clothing Co has entered voluntary administration after failing to find a buyer for the business.

Staff in Australia and New Zealand were informed of the decision on Tuesday afternoon, when they were also told that receivers had been appointed.

Receivership allows secured creditors to seek repayment of outstanding debts, typically through the sale of a company’s assets.

Unlike liquidation, the business can continue trading while under receivership. Cue Clothing Co could potentially resume operations after assets are sold and its debts have been settled.

At its height, the fashion chain operated more than 200 stores. It now has 51 locations remaining — 42 full-price stores and nine outlet shops — all of which are expected to keep trading as the sale process gets underway.

FTI Consulting partners Kate Warwick and Vaughan Strawbridge have been appointed as receivers and managers.

Duncan Clubb and Shaun McKinnon of BDO were appointed voluntary administrators.

Hilco Capital, a British investor known for restructuring troubled companies, acquired Cue Clothing from the Levis family in April last year. The sale followed an operating loss of $4.6 million.

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,’ 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 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 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.’

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.

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