Overhead costs undo Cue and Veronika Maine despite sales growth
Fashion brands Cue Clothing and Veronika Maine have entered administration despite improving sales, undone by excessive overhead costs.
Fashion retailers Cue Clothing and Veronika Maine have collapsed. The brands operated 51 stores across Australia and New Zealand, comprising 42 full-price shops, nine discount outlets, and sections in Myer and David Jones.
Receivers at FTI Consulting said the collapse came despite rising sales and other improvements. The problem was overhead costs were simply too high.
The brands are known for sharp tailoring and modern women's work wear. UK-based owner Hilco Capital put them up for sale in August, just over a year after acquiring them from the founding Levis family.
Receivers are now seeking buyers for the business as a going concern. This would help preserve jobs and the brands' future.
- 51
- Stores across region
- 42
- Full-price boutiques
- 9
- Discount outlets
- Hilco Capital
- Owner
Why it mattersHigh-street retailers are closing even when sales improve. This shows that survival depends on keeping costs low, not just selling stock.
AustraliaHundreds of Australian retail jobs are now at risk, and customers may see store closures or merged operations in coming weeks.
Corroborated bythenightly.com.au
✓ Claims checked against the source and corrected before publish. checked 9 d ago
