The Australian arm of Dion Lee has entered voluntary administration after the retail chain Cue said they’d withdrawn their investment.
👉 Background: Dion Lee is the Australian fashion brand that was started up in 2009 and is one of the few to have found international success. Its designs have been worn by the likes of Dua Lipa, Meghan Markle, and Taylor Swift.
👉 What happened: Now, the Australian arm of Dion Lee has entered voluntary administration after the retail chain Cue said they’d withdrawn their investment from Dion Lee, which left the brand unable to stand on its own.
👉 What else: But the good news is that Dion Lee will continue operating while under voluntary administration, at least for now, and hopefully ongoing.
💡Voluntary administration is when a company is in financial trouble so it brings in an external administrator to take control of the company’s finances.
💡Entering administration often leads to company’s having to shut down, which we've seen with Australian fashion brands like Alice McCall, Sneakerboy, or Arnsdorf.
💡 But sometimes administrators can give a company a new life. For example, when Seafolly was rescued from administration and purchased for $70 million in 2023. So while it looks like Dion Lee’s in its flop era right now, there’s always the chance it could make a comeback in the future.
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