onstructive trust over up to 50 per cent of Cue Clothing Co after his abrupt termination in May last year. Rod Levis founded the company in 1964, selling T-shirts with The Beatles embroidered on the front before moving into manufacturing and changing the name of the store from Levis’s to Cue. The sale followed a net loss of $2.36 million across the Cue and Veronika Maine brands in FY23, according to Cue Clothing Co’s most recent financial report filed with the Australian Securities and Investment Commission (ASIC). “A great legacy can’t outrun a changing customer and retail landscape, and that’s where Cue got caught,” Danny Lattouf, partner and chief strategy officer of Sydney-based retail strategy and design firm, The General Store, told Inside Retail. “I can’t speak to the leadership team and their effectiveness; however, I do believe that both strategy and leadership are intertwined – what once worked didn’t,” he continued. Paused in time From Lattouf’s perspective, Cue was in its prime in the late 2000s to mid-2010s, owning the “smart, sharp, Australian-made” lane like no other brand in the retail landscape.  “It had a loyal customer, a clear point of difference, and was well ahead on quality and fit,” Lattouf explained.  “Delivering the distinct style of being a boss whilst still landing flattering looks was a hallmark of the brand,” he added. The demise of formal suiting and the rise of business casual may have had a hand in Cue’s loss of relevance in the mid-2010s.  However, another factor may have been its efforts to court a younger demographic through trendy officewear with shorter hemlines and cut-outs, despite its loyal customers being in their 30s, 40s and 50s. “Cue lost momentum when the category it led – careerwear – lost cultural currency, and the brand didn’t pivot fast enough,” Lattouf stated. “Meanwhile, younger players were rewriting the rules of brand engagement and trend agility.” In 2016, the company had 230-odd stand-alone stores and concessions – today, both Cue and Veronika Maine have 140-odd locations combined, including both flagship stores and department store concessions. In its prime, Cue was about more than just meeting the moment with the rise of the professional woman in the workplace. It was proudly Australian. “It unapologetically backed local manufacturing and design, delivering fashion with integrity and immediacy,” Lattouf elaborated. “At a time when everyone else was chasing offshore cost-cutting, Cue doubled down on trust and tailoring,” he continued. Ironically, Australian-made garments and the office siren aesthetic are trending again, but Cue’s loss of cultural capital has seen it fade to the back of consumers’ minds.  “Among certain consumers, there’s fondness – just not urgency,” Lattouf said. “Among many, it’s likely perceived as more expensive than its perceived equal,” he added. Making a comeback Lattouf thinks Cue Clothing Co is “absolutely” capable of a turnaround and revival with brand equity and a national footprint that most retailers would be envious of. “What’s important to note is that sentiment alone won’t drive revival; esteem, relevance and differentiation will,” Lattouf said. “We’ve seen this up close with brands like Freedom, Michael Hill, Rebel and Baby Bunting,” he said, citing some of The General Store’s retail transformation projects in recent years. “Understanding the customer, the opportunity and making bold moves to best capture both are critical.”  Australian designer brand Oroton could offer a blueprint for Cue to follow. Oroton went from voluntary administration in 2017 to getting back in the black in 2022, reclaiming its reputation as a fashion-forward brand. But a Cue Clothing Co comeback under the ownership of Hilco Capital is still a tall order, even with the aforementioned examples of successful Australian retail redemption stories. “It needs to rewire the brand from the customer out – not the archive in,” Lattouf stated. “That means product, purpose and positioning all need a sharper edge. Through this process, finding genuine differentiation and a voice for the brand, the right customer can hear loud and clear.” In Hilco Capital’s first major step toward reviving the brand, it poached Melanie Remai from the Country Road Group, where she worked at Trenery, to succeed Simon Schofield as CEO. Prior to her three-year stint at the Country Road Group, Remai worked at Calvin Klein, Gap Inc, APG & Co, Victoria’s Secret and Abercrombie & Fitch.  During her time leading Trenery as general manager, Remai successfully repositioned the brand in September 2023 and pushed into a more premium level – achieving double-digit sales growth this financial year, according to a press release from Hilco Capital. “Melanie’s got sharp credentials from across the globe and a deep understanding of omnichannel fashion – so the ingredients are there,” Lattouf concluded. “Among many other things, a big factor will be whether Melanie’s empowered to be bold enough.”