Australia's Cue Clothing Co enters administration after failed sale process

Australian womenswear group Cue Clothing Co has entered receivership and voluntary administration after a sale process failed to secure a buyer.

The Sydney-based owner of Cue and Veronika Maine has appointed FTI Consulting as receivers and managers, with BDO acting as voluntary administrators. A new going-concern sale process has begun, while the group’s stores continue to trade.

Cue operates 51 stores across Australia and four outlets in New Zealand, alongside concessions with department stores Myer and David Jones, an online platform and through wholesale channels.

The appointments follow a previous sale process run by owner Hilco, which failed to attract a buyer. The receivers said that while sales had increased and operational improvements had been made, these were not sufficient to offset the group’s overhead costs.

The development therefore puts the group’s store network and cost base under renewed scrutiny as potential buyers assess the business. The going-concern process could allow the established brands, stores and wholesale relationships to be acquired while restructuring options are considered.

FTI and BDO will continue assessing the business and its options, with the impact on jobs yet to be determined. The group’s chief executive had also resigned before the administration was announced.

The Cue brand dates back to 1968, while Veronika Maine was added to the portfolio later. Both brands have established positions in the Australian and New Zealand womenswear markets.