Cue Clothing Loses CEO and CFO as Hilco Puts 51-Store Retailer on Market
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Cue Clothing Co is operating without a chief executive or chief financial officer as owner Hilco Capital attempts to sell the 51-store Australasian fashion retailer.
CFO Josephine Barbaro departed during the sale process, followed shortly after by CEO Melanie Remai, leaving the Sydney-founded owner of Cue and Veronika Maine without top executive leadership.
Executive Exits During FTI Advisory Mandate
Advisory firm FTI Consulting is managing the sale on behalf of Hilco, which placed the retailer on the market just over a year after acquiring it. Both departing executives spent less than two years combined at the company.
Hilco put the retail network on the market despite a 5 per cent annual sales increase that internal forecasts project will continue. The UK turnaround firm has not issued an official rationale for the rapid divestment.
Operational losses at the business have narrowed over the past year. They remain substantial enough to weigh on cash flow, while inflexible long-term store leases across Australia and New Zealand restrict further rent reductions.
Turnaround Friction and Portfolio Track Record
For private equity buyers and turnaround specialists in the Asia-Pacific apparel sector, the breakdown highlights the structural risk of inherited retail footprints. High street landlords across major Australian shopping centres continue to enforce long lease terms, limiting the room private owners have to restructure cost bases without formal insolvency processes.
Hilco has run into similar operational friction across its consumer portfolio in recent cycles. The firm placed UK homeware chain Homebase into administration in 2024, and it offloaded accessories brand Cath Kidston to Next Plc in 2025 for 16 million Australian dollars, equivalent to 8.5 million British pounds.
Legacy Leases and the Next Ownership Phase
The Sydney fashion house built its reputation over five decades on local design and premium department store distribution before selling to Hilco. The private investment firm took control with plans to stabilise the brand following post-pandemic trading shifts.
Prospective bidders reviewing the FTI sale memorandum must now price in executive recruitment costs alongside fixed store lease commitments across the 51 operating locations.