Major Australian fashion brands Cue and Veronika Maine enter administration

One of Australia’s best-known fashion businesses has collapsed, with the company behind Cue and Veronika Maine now up for sale.

Cue Clothing Co entered voluntary administration on Tuesday, and its lenders also appointed receivers to three companies in the group.

The companies’ directors appointed Duncan Clubb and Shaun McKinnon of BDO as voluntary administrators.

FTI Consulting said in a statement that Kate Warwick and Vaughan Strawbridge were then appointed receivers and managers of Cue & Co, Cue NZ and Cue International (NZ) by the companies’ lenders.

The business will continue trading while its finances and restructuring options are assessed.

Cue and Veronika Maine operate 51 stores across Australia, including nine discount outlets, and also have a retail presence in New Zealand.

The Sydney-based company operates both brands in the premium womenswear market, selling through its own boutiques and major department stores.

Receivers said increased sales and other improvements across the group had not been enough to offset overhead costs.

A sale process will begin immediately, with the receivers seeking offers for the businesses as going concerns.

For now, stores will stay open as usual.

“The Receivers are continuing to trade the business while they undertake an assessment of the business and restructuring options available,” the statement read.

“A sale process seeking offers for business as going concerns will also commence immediately seeking to secure the future of the brands, a pathway to profitability and ongoing employment for staff.”

Nine.com.au has reached out to Cue Clothing Co for comment.