Former Myer executive chairman Bill Wavish has acquired collapsed Australian fashion retailer Cue Clothing Co, pulling the 60-year-old apparel group out of receivership after administrators shut down more than half of its retail network.
The purchase gives the veteran retail leader control of both the Cue label and sister brand Veronika Maine, concluding an insolvency process that reduced the business from 51 retail locations to just 20 doors.
Investment firm Hilco Capital placed the business into administration and receivership in September after a one-month sales campaign failed to secure a buyer, leaving receivers from FTI Consulting to manage operations amid “insufficient sales”.
How the Receivership Unfolded
Hilco Capital initiated the insolvency proceedings after private sale efforts stalled. Receivers from FTI Consulting took charge of the operating business as customer traffic softened and sales failed to cover overheads.
The company suffered severe executive departures during Hilco Capital’s one-month sales campaign, losing both its chief executive officer and chief financial officer. FTI Consulting kept the registers running at a rump of viable locations while looking for bidders with the balance sheet to take on long leases.
Store closures came swiftly. In mid-October, receivers confirmed the shuttering of 26 locations across the country, cutting lease obligations and staff rosters to stop operating losses while negotiations continued.
Rival Bidders and Family Ties
Wavish, who led department store chain Myer as executive chairman ahead of its listing on the Australian Securities Exchange, stepped in to beat competing interest from fashion brand operator Brand Collective. Justin Levis, son of Cue founder Rod Levis, had also pursued the assets during the bidding process.
The transaction returns the company to an executive closely connected to its originators. Wavish is a long-standing personal friend of Rod Levis, who started the fashion group six decades ago and built it into an anchor apparel tenant across prime Australian shopping strips and department store concessions.
Turnaround duties now fall directly on Wavish, whose background spans department store merchandise overhauls and grocery operations. Reviving the label will require stocking floors that consumers abandoned for cheaper online imports and premium specialty brands.
What the Balance Sheet Carries
Cue produced top-line gains in the financial year prior to its collapse, but the margin was too thin to survive modern rental structures. Revenue rose from $98 million in fiscal 2024 to $103.2 million in fiscal 2025.
Net losses narrowed from $14.1 million down to $5.1 million over the same period. That operating improvement proved too slow when rising store wages, softer discretionary foot traffic, and mounting finance charges squeezed liquidity at the end of winter.
For shopping centre landlords and apparel suppliers throughout the region, the deal stops an outright liquidation. A network of 20 profitable doors offers a cleaner base for wholesale partners and garment makers than the legacy network, which carried too many underperforming leases signed before post-pandemic office patterns altered corporate workwear demand.
The Preceding Collapse
Hilco Capital’s ownership ended abruptly when it became clear the label could not fund its working capital requirements into the spring selling season. The private equity backer pulled support after internal cost cuts failed to outpace declining sales volumes.
Trade creditors and property groups watched the rapid wind-down over September and October as administrators cut non-performing concessions and standalone shops. Without immediate scale, regional apparel labels have struggled to match the sourcing power and digital logistics of global fast-fashion platforms.
Formal transfer of the trading entity and any restructured lease terms between Wavish and shopping centre landlords across the remaining 20 doors will determine how quickly fresh inventory reaches store shelves for the summer season.
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