Designer Dion Lee’s brand goes into administration

Dion Lee is the latest local designer to go into administration, with major problems with his New York store and issues with his major backer said to be the reason behind the financial issues.

Dion Lee is the latest in a long line of local designers to go into administration, with major problems with his New York store and issues with his major backer said to be the reason behind financial issues.

Following in the footsteps of Alice McCall, Ellery, Tigerlily, Arnsdorf and Kirrily Johnson, it was announced this week the brand, which is a go-to for superstars Taylor Swift and Dua Lipa, has gone into administration.

Many claim the fact Lee had so many retail stores, plus a New York site that wasn’t going according to plan, exacerbated his financial woes. Australian insolvency firm DVT Group administrator Antony Resnick will “urgently assess all options” relating to the US business.

“Dion staged his fall 2021 show in New York and said then that space would become his first store in America when it was set to open that summer,” one insider said.

“However, it never opened. It is a heritage building, a 4000 square feet space and a lot of the building wasn’t to code.

Dion Lee, whose fashion brand has gone into administration. Picture: Supplied

“He couldn’t open the store until they sank a lot of money into it. This has increased financial pressure.”

They also speculate that disagreements with his powerful backer, Cue Clothing Co, which acquired a major share in Dion Lee in 2013, may have contributed to its demise. Cue recently withdrew from a long-running partnership agreement it had with the brand and recalled its investment.

Dua Lipa wearing Dion Lee.

Dion Lee designs at New York Fashion Week.

Just last year, Cue boss Justin Levis told another publication: “Dion Lee just a few years ago was a $20m business, and it is now at about $40m. Within the next year and a half I’m predicting that to be a $60m business.”

But it seems that the relationship abruptly came to an end. Justin Levis is the executive director of the Australia-owned and operated Cue, encompassing brands Cue, Veronika Maine and Dion Lee.

His wife Beth was involved with the brand and worked across his brand management, marketing and PR. She often shared snaps of herself wearing Dion Lee to her Instagram page, but the last photograph of her wearing and tagging the cult brand was in January.

Many claim Lee’s situation is not dissimilar to designer Kym Ellery, whose brand Ellery Land collapsed in 2019, owing creditors millions. Ellery fled the country and has since made Paris her home. Lee resides in New York.

“We see this time and time again, especially in Australia,” one fashion insider said.

News of Lee going into administration may come as a surprise, with Swift spotted wearing one of his $650 crochet corsets to the Super Bowl. The Australian fashion designer also worked on a shoe collaboration with Kanye West

Many believe the writing was on the wall for Lee.

“I believe Dion forgot his roots,” one unnamed source said. “And he opened too many stores.

“Unless you are a Zimmerman, opening too many stores is a recipe for disaster.

“His backers likely got sick of him not focusing on profits.”

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