Lenders have appointed receivers to Cue Clothing, placing the Australian fashion chain into receivership amid ongoing financial difficulties and renewed concerns over the stability of key retailers in the industry. The move has refocused attention on department store David Jones, with some analysts questioning whether the retailer could also face similar challenges.

FTI Consulting confirmed that Kate Warwick and Vaughan Strawbridge were appointed as receivers and managers of Cue & Co Pty Ltd, Cue NZ Pty Ltd, and Cue International (NZ) Pty Ltd effective September 15, 2026. The appointment followed the earlier placement of the companies under voluntary administration by directors Duncan Clubb and Shaun McKinnon of BDO, also on September 15. The lenders initiated the receivership following financial distress within the business.

Cue, a Sydney-based company known for its Veronika Maine and Cue brands, has long maintained a significant presence in major Australian and New Zealand cities. Historically, Cue distinguished itself as one of the few major clothing labels to manufacture locally but eventually shifted production offshore due to rising costs. The company’s products are sold through major department stores including Myer and David Jones—the latter currently under scrutiny for delayed supplier payments.

The business was acquired in April 2025 by Hilco Capital, a British-based special situations investor that also serves as a major lender to David Jones. Despite some improvements in sales and operational metrics, receivers noted that these gains were insufficient to offset high overhead costs. The receivers are actively trading the business while evaluating restructuring and sale options and intend to launch a sale process to seek offers for the company as a going concern.

Market observers suggest that Myer, backed by billionaire Solomon Lew, is the most likely prospective buyer for Cue, although some analysts see liquidation as the other potential outcome if a sale cannot be secured. The challenges faced by Cue resonate with broader industry trends. According to IBISWorld, clothing retailers confront intensifying competition from direct-to-consumer models and online-only brands, which enable manufacturers to bypass traditional retail channels and lower costs. This shift has negatively impacted wholesalers’ revenues, as manufacturers increasingly focus on niche markets and upscale boutiques.

Cue’s struggle follows the collapse of Dion Lee Enterprises in 2024, a company previously linked to Cue founder Rod Levis. Over the past year, Cue worked with restructuring professionals, including Mick Calder and Eric Morris—former head of The Pas Group—and was led by former Country Road Group executive Melanie Remani during its turnaround efforts.

Established in 1968, Cue has designed its fashion from its head office in Sydney’s Surry Hills and built a strong brand identity over decades. However, the combination of structural industry changes, rising inflation, and weakened consumer spending power continues to challenge the viability of established retailers like Cue and their department store partners.