This was published 5 months ago
Australian fashion label Dion Lee collapses
By Jessica Yun and Melissa Singer
Designer label Dion Lee has appointed voluntary administrators in the latest high-profile business to come under pressure amid difficult economic conditions.
The fashion house, which has six stores in Australia and one in the US, is now under the control of insolvency firm dVT Group administrator Antony Resnick, who will continue running the business as a going concern as he urgently “assesses all options” relating to the US business.
Designer Dion Lee prepares backstage for his fashion show during New York Fashion Week in February 2019.Credit: Fernanda Calfat/Getty Images
“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 team and getting across all the relevant operational and financial data,” Resnick said in a statement.
Resnick said the Dion Lee brand, founded in 2009 by one of Australia’s best-known fashion designers, has become a globally recognised and credible high-fashion label.
“It is regularly worn by cultural icons and influencers. It is noted in the industry for its unique designs, all of which should attract both local and international investor interest,” said Resnick.
Lee attended Newtown School of Performing Arts and then TAFE NSW Fashion Design Studio. He debuted his first collection at Australian Fashion Week in 2009 at the age of 23, has showcased at London Fashion Week and has been showing at New York Fashion Week since 2013.
Lee’s clothes were beloved by celebrities the world over and in Australia, including the likes of Nadia Bartel. In February, Lee received a major boost when Taylor Swift wore a corset he designed to the Super Bowl, where she cheered on her boyfriend, Kansas City Chiefs’ player Travis Kelce.
His pieces have also been worn by Meghan, Duchess of Sussex, Kylie Minogue and Dua Lipa. Lee has designed the uniforms of the Opera House, where he opened Australian Fashion Week in 2018.
“There is no doubt as to the high creative regard in which it is held,” said Resnick.
“It is too early to comment in any detail on its current financial position other than to say our intention at this me is to operate the brand as a going concern.”
The administrators will convene a creditors’ meeting and prepare a creditors’ report in the coming weeks.
Lee skipped New York last season to show in Shanghai, ostensibly to reach into the Chinese market.
But all that could be in doubt following Thursday’s developments, key to which was the partnership Lee had with the Cue clothing company, run by the Levis family, which had a significant stake in Lee’s brand.
According to reports, the withdrawal of Cue’s investment exacerbated the voluntary administration of Lee’s business.
In a statement, a spokeswoman for Cue said that “after a recent strategic review, a decision has been made by the Cue Group to focus on our local Cue and Veronika Maine operations”.
Hailed as one of the country’s biggest design talents and sometimes compared favourably to Alexander McQueen, Lee is also a past winner of the Australian Fashion Laureate and the National Designer Award.
The administrators dVT group, Cue and Dion Lee have been contacted for comment.
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