Australian fashion brand Dion Lee enters liquidation
Luxury fashion label Dion Lee has entered liquidation after failing to secure a buyer. The Australian arm of the company, known for dressing celebrities like Taylor Swift and Dua Lipa, will cease operations after 15 years in business.
The Australian arm of Dion Lee went into voluntary administration in May 2024, owing creditors $35 million. Despite generating over $3 million in sales during administration, no suitable buyer emerged. The company's remaining stores are set to close by early October 2024, with its online presence continuing until November.
Dion Lee, founded in Sydney in 2009 by its namesake designer, had grown to include six stores in Australia, one in the United States, and over 160 global stockists. The brand gained popularity among celebrities and was known for its luxury apparel.
Financial troubles began to surface when a major partner, Cue Clothing Co, withdrew its investment. Cue had acquired a stake in Dion Lee in 2013 as part of a strategic partnership but has since stepped away to focus on its own brands.
The bulk of the company's debt, $29.1 million, is owed to secured creditors. The Cue Clothing Co family is the largest creditor, owed $20 million, followed by the Commonwealth Bank, which is owed over $7 million.
The liquidation marks the end of a once-promising Australian fashion success story, leaving employees facing job losses and the local fashion industry with one fewer homegrown label.
