‘Disappointing’: Huge update as iconic retailer goes bust

Iconic Australian fashion brand Cue Clothing has made the “difficult decision” to close stores after it entered into receivership on Tuesday after more than 60 years in business.

Cue Clothing operates Cue and Veronika Maine, two of Australia’s most recognised women’s fashion labels.

In its latest update receivers FTI announced they would close five stores: Woden Cue, Parramatta Cue, Mosman Veronica Maine, Melbourne Central Cue and Armadale Cue.

FTI Consulting Receivers and Managers Kate Warwick and Vaughan Strawbridge labelled the decision as disappointing.

“A difficult decision has been made to close five stores across the network, which the Receivers believe is in the best interest of the businesses as a going concern,” they said.

A spokesperson for Cue Clothing’s parent company Hilco Capital said on Tuesday the decision to appoint receivers and managers to Cue and Veronika Maine was made after a difficult period.

“It is a disappointing outcome, but the only available course of action given the circumstances,” a spokesman said.

“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.

“I 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.”

The receivers noted an increase in sales and other improvements across the group were insufficient to mitigate the impact of overhead costs currently hitting the business.

“The receivers are continuing to trade the business while they undertake an assessment of the business and restructuring options available,” a spokesman 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.”

Originally published as ‘Disappointing’: Huge update as iconic retailer goes bust