Rag trade casualties: why Aussie brands are going broke

The spectacular collapse of rag trade stable Mosaic meant household names Katies, Millers, Rockmans, Noni B and Rivers all pulled the shutters down in 2025.

Swimwear brand Tigerlily and luxury fashion label Dion Lee both fell into administration in 2024, while long-standing favourite Sass & Bide announced months later it too would close most of its standalone stores.

Just this week, one of the nation's longest-running fashion groups, Cue, and Sydney-based Veronika Maine also went into receivership.

Experts say a business model already difficult to make work is being squeezed from several directions at once, with structural pressures putting the future of Aussie fashion houses in doubt.

There is no single explanation for brand failure but mid-market labels are most at risk, according to Carol Tan from RMIT's School of Fashion and Textiles.

"I don't think this is simply a story about the decline of bricks-and-mortar retail," she tells AAP.

Rising operating costs seem to top the list, yet fixed outgoings such as rent, wages, inventory and store operations are no doubt up there.

Then there is the challenge of sustaining large physical retail networks.

"Many of these retailers were built in an era when store footprint was a major competitive advantage," Associate Professor Tan says.

The past decade has seen a transformational shift in how Australians shop alongside escalating cost-of-living pressures.

"Today, consumers have more choice and increasingly research, compare and purchase products online," Assoc Prof Tan says.

"They have access to more brands, more information and more purchasing channels than ever."

The brands that are succeeding have adapted to changing consumer expectations and behaviours.

"What's also notable is that we're seeing distress across multiple retail categories and price points, not just fashion," Assoc Prof Tan says.