Fashion retailer with NZ stores collapses after nearly 60 years

An iconic Australian fashion retailer with stores in New Zealand has entered receivership after nearly six decades in business. 

Founded in 1968, Sydney-based Cue Clothing Co operates the Cue and Veronika Maine womenswear brands. 

British owner Hilco Capital has appointed FTI Consulting’s Vaughan Strawbridge and Kate Warwick as receivers and managers. 

Duncan Clubb and Shaun McKinnon of BDO Australia were separately appointed voluntary administrators. 

Cue’s New Zealand website lists stores in Newmarket and Onehunga in Auckland and Wellington, as well as a concession at Ballantynes in Christchurch. 

Staff were informed of the voluntary administration on Tuesday afternoon, the Australian Financial Review reported. 

A Hilco spokesman described the development as a “disappointing outcome, but the only available course of action given the circumstances”. 

“Our intention has always been to fund Cue to restore growth and profitability,” he told the Australian Financial Review. 

“This appointment will now provide an opportunity for a new owner to carry the Cue and Veronika Maine brands forward.” 

The receivers said increased sales and other improvements were not enough to offset the company’s high overhead costs. 

A spokesman said: “The receivers are continuing to trade the business while they undertake an assessment of the business and restructuring options available. 

“A sale process seeking offers for business as going concerns will also commence immediately seeking to secure the future of the brands, a pathway to profitability and ongoing employment for staff.” 

The appointments come just a month after Cue and Veronika Maine were put up for sale.