Cue Clothing Reports $4.6M Loss Before Ownership Change

Cue Clothing is working to stabilise after reporting a $4.6 million operating loss in 2024, which led the long-standing fashion brand to change ownership. A family legal feud and changing consumer behaviour may make the road to recovery harder.

The Sydney-based retailer, known for its corporate womenswear and secondary label Veronika Maine, saw a 12% decline in revenue during the 2024 financial year with total revenue dropping to $49.6 million. These challenges reflect broader difficulties faced by Australian retailers, as higher living costs and altered work patterns squeeze household budgets and shift shopping habits.

With rising rent and reductions in marketing spend, Cue’s financial position deteriorated. The company went from a $1.3 million profit in 2023 to a $4.6 million loss in 2024. Financial pressure increased further after a failed investment in fashion label Dion Lee. Supported for years by a $20 million family loan, Dion Lee entered administration, exposing internal tensions within the Levis family, who have operated Cue since 1964.

The brand was recently sold to UK investment firm Hilco Capital and is now preparing for a fresh start under a new chief executive from a Country Road-owned brand. However, an ongoing dispute in the NSW Supreme Court between founder Rod Levis and his son over succession and the sale threatens to divert attention from rebuilding the business.

Cue’s future success will rely on its ability to reconnect with customers and update its offering. In a post-COVID retail environment, traditional workwear must now compete with more casual alternatives. Cue joins a growing number of fashion retailers facing economic pressure and shifting demand.

Source: Australian Financial Review, Growjo, Ragtrader

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