Tag: fti consulting

  • Bill Wavish Rescues Cue Clothing After 31 Store Closures

    Bill Wavish Rescues Cue Clothing After 31 Store Closures

    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.

  • Sir Dickson Poon Explores Sale of Harvey Nichols as Losses Reach £34 Million

    Sir Dickson Poon Explores Sale of Harvey Nichols as Losses Reach £34 Million

    Hong Kong retail billionaire Sir Dickson Poon is exploring a potential sale of Harvey Nichols, appointing FTI Consulting to assess strategic options after 35 years of ownership.

    The British luxury chain is engaged in early-stage talks with multiple international parties regarding a potential transaction or new investment. The formal review follows Poon’s retirement as a company director last month.

    Advisers at FTI Consulting are evaluating proposals as the 195-year-old retailer contends with deteriorating earnings. In its 2024 financial year, Harvey Nichols saw turnover decline 5 per cent to £204 million while pre-tax losses widened from £21 million to £34 million.

    Widening Deficits Across the Flagship Network

    Harvey Nichols operates flagship sites across Britain, including Edinburgh, Leeds, Manchester and its core multistory property in London’s Knightsbridge. Internationally, the footprint extends to stores in Hong Kong and several Gulf markets, alongside London’s OXO Tower Restaurant, Bar & Brasserie. The overall group employs about 1,200 staff, but footprint limitations have steadily eroded margins relative to rivals.

    Pre-tax deficits increased from £21 million to £34 million in the 2024 financial year, according to company accounts. Footfall declines followed the British government’s withdrawal of tax-free shopping for international tourists. Competitors Harrods and Selfridges weathered that policy shift by deploying significantly larger retail floor plates that accommodate deep brand concessions and private client salons.

    The Limits of Mid-Tier Luxury Footprints

    For Asian retail conglomerates and luxury operators, the disposal highlights the structural vulnerability of traditional department stores that lack property ownership or mega-flagship scale. Retailers with tight physical footprints cannot extract the concession fees or exclusive boutique allocations demanded by tier-one European fashion houses. When operating costs rise, smaller department stores absorb inventory risk that broader department stores push directly onto luxury brand tenants.

    Prospective buyers face heavy capital expenditure commitments if they intend to turn the brand around. Chief executive Julia Goddard, who took over in 2024 after leaving Alexander McQueen, started refurbishing the London flagship and pushing floor space into high-margin fine jewellery. Preserving wholesale margins while funding store refits across secondary regional outposts represents a fragile balance sheet exercise for any incoming operator.

    From Knightsbridge Hub to Transformation Review

    Poon purchased Harvey Nichols from Burton Group in 1991 for £53 million. His leadership team, which included creative director Mary Portas, turned the Knightsbridge venue into a fixture of 1990s pop culture and fashion, attracting high-profile patronage from Diana, Princess of Wales. Regional and international franchising followed, expanding the brand to Asian and Middle Eastern retail developments.

    Recent years broke that trading momentum as pandemic disruptions coincided with shifting consumer spending patterns in core tourist corridors. The department store group declined to detail terms under discussion, noting: “We do not comment on market speculation. Harvey Nichols remains fully focused on delivering its transformation strategy.”

    Advisers at FTI Consulting are vetting preliminary proposals from international bidders, with binding terms and valuation multiples dependent on trading figures submitted for the current fiscal cycle.

  • Cue Clothing Loses CEO and CFO as Hilco Puts 51-Store Retailer on Market

    Cue Clothing Loses CEO and CFO as Hilco Puts 51-Store Retailer on Market

    Cue Clothing Co is operating without a chief executive or chief financial officer as owner Hilco Capital attempts to sell the 51-store Australasian fashion retailer.

    CFO Josephine Barbaro departed during the sale process, followed shortly after by CEO Melanie Remai, leaving the Sydney-founded owner of Cue and Veronika Maine without top executive leadership.

    Executive Exits During FTI Advisory Mandate

    Advisory firm FTI Consulting is managing the sale on behalf of Hilco, which placed the retailer on the market just over a year after acquiring it. Both departing executives spent less than two years combined at the company.

    Hilco put the retail network on the market despite a 5 per cent annual sales increase that internal forecasts project will continue. The UK turnaround firm has not issued an official rationale for the rapid divestment.

    Operational losses at the business have narrowed over the past year. They remain substantial enough to weigh on cash flow, while inflexible long-term store leases across Australia and New Zealand restrict further rent reductions.

    Turnaround Friction and Portfolio Track Record

    For private equity buyers and turnaround specialists in the Asia-Pacific apparel sector, the breakdown highlights the structural risk of inherited retail footprints. High street landlords across major Australian shopping centres continue to enforce long lease terms, limiting the room private owners have to restructure cost bases without formal insolvency processes.

    Hilco has run into similar operational friction across its consumer portfolio in recent cycles. The firm placed UK homeware chain Homebase into administration in 2024, and it offloaded accessories brand Cath Kidston to Next Plc in 2025 for 16 million Australian dollars, equivalent to 8.5 million British pounds.

    Legacy Leases and the Next Ownership Phase

    The Sydney fashion house built its reputation over five decades on local design and premium department store distribution before selling to Hilco. The private investment firm took control with plans to stabilise the brand following post-pandemic trading shifts.

    Prospective bidders reviewing the FTI sale memorandum must now price in executive recruitment costs alongside fixed store lease commitments across the 51 operating locations.