UPDATE: Cue Clothing has plunged into crisis as sales nosedive 12% in 2024, leading to an operating loss of $4.6 million. This alarming decline signals distress for the women’s fashion retailer just months before its takeover by British asset manager Hilco Capital in April.
Latest reports reveal Cue Clothing’s sales dropped to $49.6 million for the 53 weeks ending June 30, 2024, down from $56.2 million the previous year. While sales in Australia were struggling, New Zealand reported an uptick, suggesting regional disparities in performance.
The financial turmoil follows the collapse of Dion Lee, a brand previously acquired by Cue founder Rod Levis. Dion Lee, which fell into administration last year, had long been unprofitable and relied on a $20 million loan from the Levis family. This situation has exacerbated family tensions, leading to the exit of Justin Levis, Rod’s son, from the family business just two weeks prior to Dion Lee’s administration announcement.
In a striking revelation, Justin expressed feelings of betrayal, stating he was unaware of his family’s plans to sell Cue. “I felt deeply betrayed and deceived by my father’s actions,” he said, highlighting the emotional fallout of the situation.
The broader retail landscape has been challenging, with multiple companies like Jeanswest and Wittner facing similar struggles in the past year. Cue’s mounting challenges coincided with increased rent costs and slashed marketing budgets, further straining the retailer’s finances.
As Cue Clothing navigates this critical juncture, it is also preparing for a leadership transition. Outgoing CEO Simon Schofield, who joined from Trenery, will step down in August. The company’s future now hinges on the strategic direction set by Hilco Capital and the new leadership.
The Levis family’s legal issues are set to escalate, with a case scheduled in court later this week. The high-profile solicitors, Sekel Grinberg Judd, representing Rod and Lynette Levis, were recently forced to withdraw due to a conflict of interest, adding another layer of complexity to this unfolding story.
As these developments continue to impact the retail sector, stakeholders are watching closely. The future of Cue Clothing hangs in the balance, and the implications could resonate throughout the women’s fashion industry. Stay tuned for more updates as this story unfolds.
