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[SITUATION] · [QUIET] · [BUSINESS]

3 clusters · 11 sources · 31 days · First seen · Last updated

Cue Clothing and Veronika Maine administration

Overview

Fashion retailers Cue Clothing and Veronika Maine have entered voluntary administration following a period of instability under their UK-based owner, Hilco Capital. Despite recent improvements in sales, receivers from FTI Consulting reported that rising overhead costs prevented the brands from achieving profitability.

Initially, administrators closed five stores, including Cue outlets in Woden, Parramatta, Melbourne Central, and Armadale, and a Veronika Maine store in Mosman. As the sale process progressed, FTI Consulting announced the closure of an additional 26 stores across Australia and New Zealand. These closures involve 13 Cue locations and nine Veronika Maine locations in Australia, plus three stores in New Zealand, primarily because potential bidders identified them as underperforming sites they do not wish to acquire.

Despite the shrinking physical network, both brands continue to trade as a going concern, and their wholesale presence in Myer and David Jones remains unaffected. Administrators are seeking to redeploy staff into continuing stores whenever possible. Potential buyers, including Brand Collective and Justin Levis, have submitted non-binding indicative offers, and commercial matters are currently being finalized with shortlisted parties.

Entities

Veronika Maine · FTI Consulting · Cue Clothing Co · Hilco Capital · Brand Collective

Timeline

  1. [BUSINESS] 6 sources
    Cue and Veronika Maine to close 26 stores amid sale process

    Receivers for Cue Clothing Co and Veronika Maine are closing 26 stores across Australia and New Zealand as they finalize a sale process with a shortlist of potential buyers.

  2. [BUSINESS] 4 sources
    Cue Clothing Co enters administration and closes five stores

    Australian fashion retailer Cue Clothing Co has entered voluntary administration, resulting in the closure of five Cue and Veronika Maine stores as administrators seek a buyer for the brands.

  3. [BUSINESS] 6 sources
    Cue Clothing and Veronika Maine collapse despite rising sales

    Fashion brands Cue Clothing and Veronika Maine have collapsed due to high overhead costs, despite rising sales. Receivers are seeking a sale of the businesses to secure future employment.

Sources

7news.com.au · communitynews.com.au · denbighshirefreepress.co.uk · epochtimes.com · insideretail.com.au · internewscast.com · perthnow.com.au · retailbiz.com.au · thenightly.com.au · theqldr.com.au · womensweekly.com.au

This summary has been updated 1 time: see revision history