Fashion enthusiasts were shocked when the Australian franchise of major fashion brand Dion Lee went into administration on Thursday.
The much-loved brand, worn by megastars including Taylor Swift and Dua Lipa, is understood to have collapsed after a partnership deal with Cue Clothing Co fell through.
And industry insiders have now revealed the signs that Dion Lee was headed for disaster.
speaking to news corporation On Sunday, a source claimed that Lee had “forgotten his roots” in recent years by opening too many retail stores.
‘Unless you’re a Zimmerman, opening too many stores is a recipe for disaster. “His sponsors probably got tired of him not focusing on profits,” they stated.
Industry insiders have revealed signs that Dion Lee was headed for disaster, after it was announced that the brand had entered administration. (Designer Dion Lee is pictured in 2023)
Another insider pointed out Lee’s failed plans to open a retail store inside a massive loft with fifteen-foot-high ceilings and original columns in New York’s SoHo district.
He had planned to open the retail store after presenting his Fall/Winter 2001-2002 collection at the same location, but his plans never came to fruition.
‘It was never opened. It’s a heritage building, a 4,000 square foot space and much of the building was not up to code. He couldn’t open the store until they invested a lot of money in it,” the source said, noting that the project put enormous financial pressure on Lee.
Speaking to News Corp on Sunday, a source claimed Lee had “forgotten his roots” in recent years by opening too many retail stores. (Pictured: A model walking at Dion Lee’s Spring 2004 show at New York Fashion Week)
The source also speculated that Lee’s disagreements with his powerful sponsor Cue Clothing Co may have contributed to the brand’s downfall.
Sign He became a partner with Dion Lee in 2013 and the company was also a shareholder in the business.
However, sign He reportedly ended his partnership deal with Dion Lee and also canceled his investment in the business, according to The Australian.
Another insider pointed out Lee’s failed plans to open a retail store inside a huge loft with fifteen-foot-high ceilings and original columns in New York’s SoHo district (pictured).
The withdrawal of Cue’s investment is believed to have exacerbated the decline of the Dion Lee brand.
Announcing the breakdown of the relationship, a Cue spokesperson said: “Following a recent strategic review, Cue Group has made the decision to focus on our local Cue and Veronika Maine operations.”
Antony Resnick, liquidator of the bankruptcy company dVT Group, has been appointed administrator of the Australian Dion Lee.
The source also speculated that Lee’s disagreements with his powerful sponsor Cue Clothing Co may have contributed to the brand’s downfall. (Pictured: Models wearing clothing designed by Dion Lee at Australian Fashion Week 2024)
dVT Group is also in the process of considering investors for the company to strengthen its current financial position.
It is understood that the business will continue to operate until the company is restructured.
Dion Lee found renewed fame after pop star Taylor Swift wore a $650 Dion Lee crochet corset to the Super Bowl while cheering on her boyfriend Travis Kelce.
Pictured right is pop star Taylor Swift wearing a Dion Lee crochet corset at the SuperBowl in February.
The clothing brand was founded by Australian fashion designer Dion Lee in 2009.
Since then, the company has grown exponentially, with six outlets in Australia and 160 stores worldwide selling the brand, including a flagship store in the US which opened in December last year.
Lee, 38, also collaborated with Kanye West on a shoe collection and designed clothing worn by pop star Dua Lipa.
Some of the accessories designed by Dion Lee retail for up to AU$990.
Resnick said it is too early to evaluate the company’s assets and liabilities.
The Dion Lee brand has achieved global recognition and credibility in the world of high fashion,” Resnick said in a statement to news.com.au.
Administrators have been appointed to oversee the company’s financial operations (pictured, Australian superstars Kylie and Dannii Minogue wearing Dion Lee when they performed at the inaugural Sydney World Pride concert in 2024).
‘It is regularly used by cultural icons and influencers. He stands out in the industry for his unique designs. All of which should attract the interest of both local and international investors.
Mr. Resnick also said that a creditors’ report, which outlines the amount of money owed to a company’s suppliers, is being prepared and that a meeting has not yet been held with suppliers to discuss outstanding payments.
It is only understood that Australian store operations have been affected and customers can still access the company’s online website.
The financial situation of the Dion Lee store is also reportedly being evaluated.