Receivers have confirmed that 26 stores across both Cue and Veronika Maine brands will be shuttered following their shortlisting of potential buyers.
This follows the last update from FTI Consulting, where four Cue stores and one Veronika Maine store were shuttered.
Cue Clothing Co fell into voluntary administration and receivership on September 15, with Kate Warwick and Vaughan Strawbridge of FTI Consulting being appointed as receivers and managers of Cue & Co Pty Ltd, Cue NZ Pty Ltd and Cue International (NZ) Pty Ltd.
“As part of the sale process, parties were asked to identify the stores they would be interested in acquiring as part of any potential transaction,” FTI shared in a statement. “Based on the feedback received and the NBIOs submitted, there is a common group of stores parties have indicated they would not be seeking to continue with.
“As a result, 26 stores will be closed across both brands.”
The store closure program has commenced today, with the timing of closures to vary by store and will largely depend on stock levels. Following the closures, the business is expected to have around 20 stores left. The receivers did not indicate how many stores from each brand will be closed, nor which locations.
The statement did confirm that there is no impact to the concession network.
The receivers are continuing to trade the businesses as going concerns while running a sale process. Non-Binding Indicative Offers (NBIOs) have been received, and a small number of selected bidders have been shortlisted.
FTI added that there are still a number of commercial and transaction matters being worked through with the shortlisted parties. Recent reports indicate that Justin Levis, son of Cue founder Rod Levis, is one party vying to take on the business, with Brand Collective also named as an interested party.