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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.
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brand → see → retailer
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.
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partners → plunge → group
The administrators quickly shut down five stores across the country.
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administrators → shut → country
Impacted Cue locations included Woden Cue, Parramatta Cue, Melbourne Central and Armadale.
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locations → include → Cue
Mosman Veronika Maine has also been shut down.
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Maine → shut → ?
No concessions are included in the closures.
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concessions → include → closures
The receivers will explore opportunities to re-deploy staff across the network where possible,' FTI Consulting said in a statement on Friday morning.
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Consulting → explore → morning
Cue and Veronika Maine operate 46 stores across Australia and New Zealand.
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Cue → operate → Australia
Despite the store closures, the receivers say they have received strong interest from potential buyers looking to acquire Cue.
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they → say → Cue
'The receivers are continuing to trade the businesses as going concerns while running a sale process,' they said in the statement.
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they → continue → statement
Five Cue Clothing stores have closed as receivers move to cut costs and find a buyer for the struggling retailer - while a retail expert has revealed where the iconic Australian fashion brand went wrong
Cue and its sister brand, Veronika Maine, entered voluntary administration this week
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Cue → close → administration
'Expressions of interest are anticipated in early October.
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Expressions → anticipate → October
Cue was founded by Rod Levis in Sydney in 1968, with its first store opening in the Strand Arcade after he was inspired by London's booming youth fashion scene.
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he → found → scene
The brand expanded rapidly and, by 1975, had a department 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.
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Cue → expand → 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.
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It → return → 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.
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family → launch → 2005
After more than five decades of family ownership, the Levis family sold the business to turnaround specialist Hilco Capital in April 2025.
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family → sell → April
The 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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show → found → designers
Hilco attempted to return the company to profitability, but the business continued to struggle under the weight of its operating costs.
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business → attempt → costs
Despite sales rising to more than $103 million 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.
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cost → rise → finances
Cue and Veronika Maine ultimately entered receivership this week.
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Cue → enter → receivership
Carol Tan, the associate professor at RMIT's School of Fashion and Textiles, said Cue's demise is about the changing economics of retail.
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demise → say → retail
'Cue built a strong reputation over almost six decades for quality womenswear.
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Cue → build → womenswear
The challenge wasn't necessarily the product but whether the economics of the business remained sustainable in a rapidly changing retail environment.
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economics → remain → environment
Reports from the receivers suggest sales had improved, but overhead costs remained too high.
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costs → suggest → receivers
That indicates the challenge wasn't simply attracting customers, but generating sufficient margin to support costs associated with operating a large retail network.
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challenge → indicate → network
'Brand heritage remains valuable, but it's no longer enough on its own.
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it → remain → own
Consumers can compare products, prices and brands instantly, so retailers need a compelling reason for customers to choose them.
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customers → compare → them
The brands that are succeeding today aren't just selling products.
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that → succeed → products
They're offering a clear value proposition.
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They → offer → proposition
Whether that's innovation, functionality, quality, sustainability or solving a specific customer problem, consumers increasingly want to know why a brand matters.
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brand → solve → problem
'Cue and Veronika Maine still have strong brand recognition and customer loyalty.
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Cue → have → recognition
A future owner may well see value in those brands.
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owner → see → brands
The key question will be what business model and store footprint make sense in today's retail environment.'
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model → make → environment
The Aporia
