Australian designer Dion Lee enters voluntary administration
The Sydney-born label has called in administrators after Cue Clothing Co. steps back from the brand.
Australian designer brand Dion Lee Enterprise Australia has entered voluntary administration. The announcement comes after news that Cue Clothing Co. decided to withdraw from its partnership with the brand and recall their investment in the Dion Lee business.
dVT Group has been appointed as the voluntary administrator of the Dion Lee Enterprise Australian entities to evaluate the brand’s future, with a focus on attracting new investors.
The company was founded in 2009 and currently operates six stores in Australia and one in the United States. Their products are also sold through 160 outlets worldwide. The voluntary administration applies to the company’s operations in Australia, however the retail stores and online channels will remain operational. Administrator Anthony Resnick and his team are assessing all options regarding the US business as a matter of urgency.
“We are in the very early stages of our administration process, and our focus right now is on speaking with the Australian and US-based teams and getting across all the relevant operational and financial data,” said Mr Resnick. Resnick says a full creditors’ report is being prepared, and a creditors’ meeting will be held in the coming weeks.
While this move could potentially offer financial advantages to the Cue Clothing Company group, it’s rumoured that succession disputes at Cue may have played a role in the restructure. Additionally, several potential investors were said to be ready to step in.
Cue Clothing Co. acquired a shareholding in Dion Lee in 2013 after collaborating on designs in 2010, with the goal of accelerating the growth of the designer label in domestic and international markets.
“The Dion Lee brand is one of a handful of Australian fashion brands that has been able to break into international markets in recent years and there is no doubt as to the high creative regard in which it is held.” said Mr Resnick.
After presenting at New York Fashion Week for the past 10 years, the brand presented its autumn/winter 2024 show at Shanghai Fashion Week, which was held at the Shanghai World Financial Center. Dion Lee, the designer of his namesake brand, also opened his first brick-and-mortar store in the United States in December of last year. The Australian stores and wholesale business will continue trading throughout this time.
