The Australian arm of a major luxury fashion brand worn by the likes of Taylor Swift and Meghan Markle has collapsed into liquidation. Dion Lee Enterprise was found to owe creditors more than $35 million dollars after it entered voluntary administration in May due to major partners withdrawing all investments. Of that, an eyewatering $29.
1 million is owed to security editors, $20 million to majority shareholder Cue Clothing Co and the Commonwealth Bank is owed $7 million. In a statement on Friday, the brand’s appointed liquidators from insolvency firm dVT Group, said creditors on Thursday evening voted to place the eponymous business into liquidation when no “acceptable offers” were bought forward to buy the fashion label. “The second creditors meeting heard that while there had been interest from potential buyers of the brand no acceptable offer was as yet forthcoming,” it said.
dVT, also the brand's pervious administrators, will close all six Dion Lee stores across Australia from September through October. An outlet in David Jones on Sydney’s Elizabeth Street was shut down, leaving remaining stores at retail districts The Strand in Sydney, the Emporium in Melbourne and James Street in Brisbane. A few re-employed staff operate the stores after they were initially stood down in May.
Employees face termination again once shut down commences. Since May, the administrators made more than $3 million in sales across the stores after it reduced the price of apparel in s.