The spectacular unravelling of Cue Clothing and its sister label Veronika Maine into administration marks the end of a 58-year retail empire that once defined modern professional dressing for Australian women from the boardroom to after-hours events. Founded in 1968 by Rod Levis to capture a growing demographic of women entering the workforce, the company once boasted a footprint of more than 230 stores and concessions across Australia and New Zealand before dwindling to just 51 locations, with receivers FTI Consulting planning to shutter at least five more.
The Fall of an Iconic Australian Retail Empire
For nearly sixty years, wearing a tailored Cue suit served as a milestone for professional women in Australia. David Briskin, the former chief executive of Sass & Bide, captured the industry’s sentiment in a comment to The Australian Financial Review, stating that the collapse is “very sad for the state of Australian retail”. Nostalgia does not pay the rent, however, and retail experts point to a self-inflicted wound born of an inability to read changing consumer habits.
According to Jana Bowden, professor of marketing at Macquarie University, Cue was undeniably the “IT-girl brand” at its cultural peak. “But fashion changed, and Cue didn’t get the memo,” Prof Bowden told news.com.au. The pandemic rewired women’s work wardrobes by dissolving the barrier between office and home hours and ushering in a hybrid reality.
Women Demand Comfort over Restrictive Workwear
The core identity of Cue was built on how formal and powerful a woman could look in the workplace. Prof Bowden noted that women’s workwear has since pivoted toward casualisation and comfort spanning desk work, school pickups, parent duties, and dinner. With female workforce participation hitting record highs of around 63 per cent, women juggle careers alongside the lion’s share of unpaid domestic care.
“Women don’t want restrictive, synthetic heavy and rigid structured clothes to rule their multi-tasking lives; they want comfort, simplicity and everyday,” Prof Bowden said. Traditional corporate wear is now reserved only for the most formal of occasions, while premium mainstays like Country Road, Witchery, Saba, and AJE successfully pivoted. Even lifestyle and resort wear brands like Camilla are entering the fray with silk suits for workwear, while Cue remained tied to the stiff, edgy London mod movement and brand image.
Macro Pressures and Family Succession War Hit Business
Macro factors also weighed heavily on the business, including tight discretionary cash and a sheer oversupply of in-store and online womenswear brands competing for spending. Prof Bowden pointed to a crowded market of over choice, lost foot traffic in city stores, shuttering locations, and internal company drama. That internal discontent involved a family succession war playing out in the Supreme Court of New South Wales.
Justin Levis, the son of founder Rod Levis, served as executive director for years and anticipated taking the reins alongside his sister, Melanie. Instead, a dispute erupted over succession plans. In a public statement provided to Ragtrader in April last year, Justin Levis disclosed that he was taking legal action against his parents to obtain a constructive trust for up to 50 per cent of the Cue Clothing Company. The legal dispute remains ongoing.
“After nearly three decades of leadership, I hold no ownership stake in the company I helped build,” Justin said at the time, describing the situation as devastating. He added that while he respects his father’s legacy, it is inconceivable that his decades of leadership, strategic direction, and personal sacrifices have been disregarded and erased.
Receivership and the Sale to Hilco Capital
The business was sold to British-based investor Hilco Capital by the Levis family in April last year. Hilco described the receivership as a disappointing outcome, noting it was the only course of action available under the circumstances. The receivers stated that notwithstanding an increase in sales and other improvements across the group, these gains were insufficient to mitigate the impact of overhead costs currently in the business.
FTI Consulting receivers are continuing to trade while assessing operations and available restructuring options. A sale process seeking offers for the business as a going concern is also being launched. Prof Bowden observed that unless womenswear brands remain dynamic, they risk being left behind in a shifting market.
Frequently Asked Questions About the Cue Clothing Administration
How many stores does Cue operate following the administration?
Cue’s retail footprint has dwindled from more than 230 stores and concessions down to just 51 locations, with receivers FTI Consulting planning to shutter at least five of those remaining sites.
When was Cue Clothing founded and who started it?
The fashion empire was founded in 1968 by Rod Levis to capture a growing demographic of women entering the workforce.
Who owns Cue Clothing now?
The business was sold by the Levis family to British-based investor Hilco Capital in April last year, and the company is currently under the administration of receivers FTI Consulting.