BREAKING: Cue Clothing has reported a staggering 12% drop in sales, plunging to $49.6 million for the 53 weeks ending June 30, 2024. This alarming decline has pushed the women’s fashion retailer into an operating loss of $4.6 million, highlighting significant distress ahead of the company’s sale to British asset manager Hilco Capital in April.
The retailer, founded by Rod Levis in 1964, has been facing mounting challenges, including rising rent costs and slashed marketing budgets. As sales in Australia suffered, New Zealand saw a slight increase, but it wasn’t enough to offset the overall losses. This downward trend has raised concerns about the company’s future and viability in the competitive fashion industry.
In a related blow, the Levis family is grappling with internal strife following the collapse of the Dion Lee brand, which had been propped up by a $20 million loan from Rod Levis’s wealthy family. The Australian Financial Review previously reported that this failure contributed to a significant rift within the family, as Justin Levis, Rod’s son and former executive director of Cue, expressed feelings of betrayal regarding the sale of Cue. Justin, who was also a director of Dion Lee, left the company shortly before its administration in May last year.
As Cue awaits a new CEO to take over from Simon Schofield, who joined from women’s label Trenery, the brand’s struggles reflect broader issues in the retail sector. Other retailers like Jeanswest and Mosaic Brands have also faced similar challenges, leading to their demise in the past year.
The ongoing legal situation concerning the Levis family is set to unfold in court later this week. The high-profile lawyers previously hired have stepped aside due to a conflict of interest, adding another layer of complexity to this developing story.
As these events unfold, the fashion industry and Cue’s loyal customer base are left to ponder the brand’s uncertain future, making this a critical moment for both the retailer and its stakeholders. Stay tuned for further updates as this story develops.
