Dion Lee Brand to Wind Up Following Administration

Dion Lee‘s Australian business, which entered voluntary administration in May, is set to wind up after failing to reach any deals with potential buyers.

The creditors of the company have appointed Antony Resnick and Henry Kwok of DVT Group as liquidators following the second creditors meeting.

DVT reported that, despite some interest from prospective buyers, no acceptable offers had been forthcoming.

The liquidators have successfully realized over $3 million in merchandise sales since being appointed as voluntary administrators.

Retail stores for Dion Lee in Australia are expected to continue operations until late September or early October, while the brand’s online platform is projected to remain active until early November or later.

Founded in 2009 by designer Dion Lee in Sydney, the unisex fashion brand operates six stores in Australia and one in the United States, with products available through 160 outlets worldwide.

In May, documents presented to the Australian Securities and Investments Commission (ASIC) indicated that the business faced total liabilities exceeding $35 million.

The preliminary view from the administrator suggested that Dion Lee had been dependent on ongoing capital funding from related parties, as the company had not been trading profitably since 2022, which included significant capital injections exceeding $20 million from these secured creditors.

The brand underwent a strategic partnership with Cue Clothing Co. in 2013, which acquired a shareholding stake to facilitate brand growth both domestically and internationally.

However, Cue Clothing has since distanced itself from Dion Lee to concentrate on its own core brands, Cue and Veronika Maine.