Popular clothing brands Cue Clothing and Veronika Maine collapse despite improving sales
Popular clothing label Cue Clothing and its sister brand Veronika Maine have collapsed, with receivers saying improving sales were not enough to save the fashion retailers.
Popular clothing label Cue Clothing and its sister brand Veronika Maine have collapsed, with receivers saying improving sales were not enough to save the fashion retailers.
The two brands have 51 stores across Australia and New Zealand, including 42 full-price boutiques and nine discount outlets, as well as concession stands in department stores Myer and David Jones.
The brands are known for its sharp tailoring, modern women’s work and formal wear.
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By continuing you agree to our Terms and Privacy Policy.Kate Warwick and Vaughan Strawbridge of FTI Consulting were appointed as receivers, while BDO has been appointed as voluntary administrators.
“The receivers understand that notwithstanding the increase in sales and other improvements across the group, these were insufficient to mitigate the impact of overhead costs currently in the business,” FTI said in a statement on Tuesday.
The receivers will continue to trade the business while they undertake restructuring options.
“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,” FTI said.
In August, its UK-based owners Hilco Capital put Cue Clothing and Veronika Maine up for sale just over a year after acquiring it from the founding Levis family.
