The news
Designer label Dion Lee will exit the Australian fashion scene after the troubled company failed to find a buyer.
At a creditors’ meeting on Thursday, administrator Antony Resnick, of dVT Group, recommended the 15-year-old company be wound up after a buyer failed to emerge from a three-month voluntary administration process.
“While there had been interest from potential buyers of the brand, no acceptable offer was as yet forthcoming,” said a statement from administrators.
In its most recent report, which was circulated to creditors before Thursday’s meeting, administrators had recommended the wind-up order. This was despite the brand logging sales of more than $3 million and 20,000 garments since administrators were appointed.
Dion Lee’s show at 2019 New York Fashion Week.
Since the administration began, the brand has been running a clearance sale with prices as low as 80 per cent off original retail. Since May 22, the brand has made $3.2 million in sales, but it’s understood most of this is at a substantially lower profit margin than when the business was in good health.
There’s still a lot of stock floating around: the administrators are holding 15,000 items…
