dep
At a glance…
- After almost six decades of dressing Australian women, fashion label Cue Clothing Co and its sister brand Veronika Maine have collapsed.
- There are significant warning signs that Australia could be facing another wave of retail closures, particularly among established fashion labels and department stores.
- Several major Australian retailers, including David Jones and Myer, are experiencing financial difficulties.
After almost six decades of dressing Australian women, well-known fashion label Cue Clothing Co has collapsed.
The Sydney-based brand entered receivership on Tuesday, September 15, 2026. FTI Consulting, Cue’s receivers and managers, confirmed increased sales and other improvements were not enough to offset overhead costs.
The business behind Cue has also collapsed its sister brand, Veronika Maine, which was founded in 1998. Both labels focused on tailored workwear for women, but Rod Levis founded Cue in 1968 as a boutique store in Sydney’s Strand Arcade. It was originally inspired by London’s modernists – young working-class people who loved Jazz and tailored European fashion. Veronika Maine offered a soft alternative to Cue’s sharp style.
Cue and Veronika have a collective 51 stores across Australia, including nine discount outlets. After quickly becoming a household name in Australia, it began through major department stores like David Jones. Before the COVID-19 pandemic, in Cue’s heyday, it had 230 stores.
Sales weren’t Cue’s only complication. An all-out succession war was taken to the Supreme Court of New South Wales.
Justin Levis, the son of Cue founder, revealed he was suing his parents, seeking a constructive trust of up to 50 per cent of the Cue Clothing Company. The legal dispute began in April 2025 and is still ongoing.
The future of these classic Australian labels is unknown. Both are currently up for sale, but business is continuing somewhat as usual.
Stores will remain open, but both brands are having major online promotions – presumably to shed stock – with Cue and Veronika Maine offering up to 50 per cent off storewide.
However, David Jones are reportedly withholding stock from Cue unless they are paid with cash up front. The major department store is also struggling amid the tough retail conditions.
Cue, a family-owned business, was sold to UK-based Hilco Capital in 2025. The Australian Financial Review recently revealed that Cue’s chief executive Melanie Remai resigned after less than 14 months in the position. This was shortly after the company’s chief financial officer quit.
“Our intention has always been to fund Cue to restore growth and profitability,” a Hilco spokesperson told the AFR, noting it has been a “disappointing outcome, but the only available course of action given the circumstances.”
“This appointment will now provide an opportunity for a new owner to carry the Cue and Veronika Maine brands forward.”
The collapse of Cue and Veronika Maine comes amid growing uncertainty across Australia’s fashion industry. On October 26, Australian label Shona Joy announced it would close after 26 years in business. Founded by designer Shona Thatcher in 2000, the brand grew from humble beginnings at Sydney’s Bondi and Paddington markets into an internationally recognised fashion label, best known for its occasionwear and bridal collections.
However, unlike Cue and Veronika Maine, Shona Joy’s closure is not due to financial difficulties. Shona told The Australian Financial Review that the business remained profitable, but she had made the difficult decision to step away to prioritise her family. The label will continue trading online until early 2027.
Meanwhile, another Australian retail institution is facing mounting financial pressure. Department store giant David Jones has reportedly recorded a $95.5 million pre-tax loss, with sales falling nearly nine per cent. According to reports, the 190-year-old retailer has also breached a loan covenant, although its primary lender, Hilco Global, has provided additional funding ahead of the Christmas trading period.
The news follows confirmation that Country Road Group, which owns Country Road, Witchery, Mimco, Trenery and Politix, will withdraw almost 100 concession spaces from selected David Jones stores from early 2027. While David Jones has not entered administration and is pursuing a turnaround strategy, the developments have raised further concerns about the future of Australia’s traditional fashion retailers.
