Five Cue and Veronika Maine stores have closed as receivers move to cut costs and find a buyer for the struggling fashion retailer – while a retail expert has revealed where the iconic Australian fashion brand went wrong.
Cue Clothing Co plunged into voluntary administration on Tuesday, with lenders installing FTI Consulting partners Kate Warwick and Vaughan Strawbridge to manage three companies in the group.
The administrators quickly shut down five stores across the country.
Impacted Cue locations included Woden Cue, Parramatta, Melbourne Central and Armadale.
Mosman Veronika Maine on Sydney’s lower north shore has also been shut down.
‘No concessions are included in the closures. The receivers will explore opportunities to re-deploy staff across the network where possible,’ FTI Consulting said in a statement on Friday.
Cue and Veronika Maine operate 46 stores across Australia and New Zealand.
Despite the store closures, the receivers say they have received strong interest from potential buyers looking to acquire Cue.
‘The receivers are continuing to trade the businesses as going concerns while running a sale process,’ they added.
Five Cue and Veroika Main stores have closed in recent days. The Sydney QVB store (pictured) is among dozens that remain open for now
Cue and its sister brand, Veronika Maine, entered voluntary administration this week
‘There has been good initial interest from potential buyers in the sale process, highlighting the strong brand recognition and positive sentiment for Cue and Veronika Maine.
‘Expressions of interest are anticipated in early October.’
Cue was founded by Rod Levis in Sydney in 1968, with its first store opening in the Sydney CBD’s Strand Arcade after he was inspired by London’s booming youth fashion scene.
The brand expanded rapidly and, by 1975, had a section in every Myer store across Australia.
Cue withdrew from Myer in 1982 and spent the next 18 years building its own retail network, eventually growing to about 100 standalone stores.
It returned to Myer in 2000 and, within four years, was stocked in about 70 per cent of the department store chain’s locations.
The Levis family also launched sister label Veronika Maine in 1999, before rolling out a dedicated network of stores for the brand from 2005.
After more than five decades of family ownership, the Levis family sold the business to turnaround specialist Hilco Capital in April 2025.
Cue is an iconic fashion retailer was founded in 1968 by Rod Levis
Cue and Veronika Maine sold more upmarket pieces than fast fashion retailers, like Zara and H&M, but below luxury designers (pictured is the 2023 Cue fashion show)
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What’s to blame for the demise of Cue?
Hilco attempted to return the company to profitability, but the business continued to struggle under the weight of its operating costs.
Despite sales rising to more than $103million in its latest financial year, the company still recorded a $5.1 million loss, with the cost of maintaining its extensive retail network continuing to weigh on its finances.
Cue and Veronika Maine ultimately entered receivership this week.
Cue’s demise is about the changing economics of retail, according to RMIT School of Fashion and Textiles associate professor Carol Tan.
She explained that customers have become much more selective about where they spend their money.
‘Cue built a strong reputation over almost six decades for quality womenswear. The challenge wasn’t necessarily the product but whether the economics of the business remained sustainable in a rapidly changing retail environment,’ Professor Tan wrote on Thursday.
‘Reports from the receivers suggest sales had improved, but overhead costs remained too high. That indicates the challenge wasn’t simply attracting customers, but generating sufficient margin to support costs associated with operating a large retail network.
‘Brand heritage remains valuable, but it’s no longer enough on its own. Consumers can compare products, prices and brands instantly, so retailers need a compelling reason for customers to choose them.
RMIT School of Fashion and Textiles associate professor Carol Tan explained that customers are still spending but have become more selective about where they spend their money
‘The brands that are succeeding today aren’t just selling products. They’re offering a clear value proposition. Whether that’s innovation, functionality, quality, sustainability or solving a specific customer problem, consumers increasingly want to know why a brand matters.
‘Cue and Veronika Maine still have strong brand recognition and customer loyalty. A future owner may well see value in those brands. The key question will be what business model and store footprint make sense in today’s retail environment.’
