Cue and Veronika Maine Enter Administration on September 15

Cue Clothing Co, which owns the premium womenswear brands Cue and Veronika Maine, entered voluntary administration on September 15 after UK turnaround firm Hilco Capital withdrew financial support. The Sydney-based company, founded in 1968, operates 51 stores across Australia and New Zealand but recorded a AUD 5.1 million loss in 2025 despite revenue of AUD 103.2 million. Receivers and administrators are now seeking a buyer to save the iconic Australian retailer.

How the collapse unfolded

Cue Clothing Co appointed Duncan Clubb and Shaun McKinnon of BDO as voluntary administrators on Tuesday. The company’s lenders then appointed Kate Warwick and Vaughan Strawbridge of FTI Consulting as receivers and managers of Cue & Co, Cue NZ, and Cue International (NZ). Hilco Capital withdrew financial support just 17 months after acquiring the business in April 2025. The collapse marks a swift reversal for a company that had operated for nearly six decades as a family business.

Why sales growth was not enough

Revenue rose to AUD 103.2 million in 2025, and the business recorded a 5 per cent sales increase with narrowing losses. However, receivers said increased sales and other improvements across the group had not been enough to offset overhead costs. The company carries expensive long-term retail leases across 42 full-price boutiques and nine discount outlets, plus department store concessions in Myer, David Jones, and Ballantynes. These fixed costs proved unsustainable.

What happens to stores and staff

All 51 stores across Australia and New Zealand will remain open while receivers assess restructuring options. A sale process seeking offers for the businesses as going concerns will commence immediately. The first meeting of creditors is scheduled for September 24. Cue is offering 25 per cent discounts storewide, while Veronika Maine is offering 20 per cent off as the business attempts to shed stock during the sale process.

The brand’s history and market position

Founded in 1968 by Rod Levis, Cue became a leading Australian label for women’s corporate workwear and power suits during the 1970s and 1980s. Veronika Maine was established three decades later as a premium label with structured silhouettes and higher-end fabrics. The brands operated through boutiques and major department stores, establishing the concession store model when Cue joined Myer in 1970. Both brands occupied distinct positions in the premium Australian womenswear market before the collapse.

Final Thoughts

Cue and Veronika Maine face an uncertain future as receivers seek a buyer to preserve the 58-year-old brands. The collapse highlights the challenge Australian retailers face when fixed costs outpace sales growth, even in premium segments.

FAQs

Disclaimer:

The content shared by Meyka AI PTY LTD is solely for research and informational purposes.  Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.