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In shock news to the industry, Australian New York-based designer Dion Lee has appointed voluntary administrators to the brand s Australian business. The brand is the fourth independent label this week to raise alarm. Whereas the other three announced the end of operations, Dion Lee’s move to voluntary administration may well mean the brand can continue.
Dion Lee, which has become a mainstay at New York Fashion Week after crossing over in 2014, is under the control of Australian insolvency firm DVT Group administrator Antony Resnick. The move comes after Australian brand and retailer Cue, which acquired a major share in Dion Lee in 2013, withdrew its partnership — and, therefore, its investment dollars. (Cue did not immediately respond to a request for comment.)
The brand has one store in the US (Miami, which opened last December), and six in Australia (a Melbourne flagship also opened at the end of last year). A second US store was slated to open in New York; the fate of which remains unclear. Resnick will “urgently assess all options” relating to the US business.
It’s another case that makes clear the glaring gap between critical industry acclaim and financial stability. Australian exports also face hurdles in making the move overseas. Lee was considered a success story after setting up in New York’s competitive market.
That the Cue withdrawal reportedly exacerbated the brand’s need for funds — so much so it was forced into administration — reflects how unfeasible a brand’s overreliance on a single retailer, or a sole source of financial support, really is. Similar to The Vampire’s Wife’s heavy reliance on Matches (as is the case with many independent brands), Dion Lee’s dependence on Cue’s support left it vulnerable.
There were hints at a bid to diversify revenue streams. For Spring/Summer 2024, Dion Lee worked with social commerce platform Emcee as a show sponsor. It’s since collaborated with the platform on its Miami store opening, and was set to sell a collaboration capsule collection at the store (also to be sold on Emcee). And last season, Lee swapped NYFW for an off-schedule Shanghai Fashion Week debut, in a bid to crack the Chinese market.
It was also a considered break from the high-octane Dion Lee shows we’re so used to seeing in quick succession. Ahead of the show, Lee told Vogue Runway: “The end of last year was so congested and busy that the reality of focusing on something like [a show] for February, right after Christmas, was unrealistic.”
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Clarification: Updated to make clear that it is only the Australian franchise of the business that has entered into administration.
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