Australian fashion label Dion Lee is currently in talks with buyers to save the brand from voluntary administration.
A spokesperson for the administrators at dVT Group confirmed the latest news, adding that the brand continues to trade in Australia.
The brand’s website shows that its outlet store is offering discounts from 50 to 80 per cent off, with its main store offering 20 per cent off everything.
Dion Lee went into voluntary administration in May this year. Documents tabled to ASIC showed that the business’ estimated total liabilities were just over $35 million.
According to the administrator’s preliminary view, Dion Lee had relied on ongoing capital funding from related parties as the company was not trading profitably, including from 2022 with substantial capital injections in excess of $20 million from related parties that are both secured creditors of the collapsed brand.
Dion Lee was established in Sydney, Australia in 2009 by its eponymous creative director. The unisex brand went into administration with six stores in Australia, one in the United States and over 160 stockists globally, including Net-A-Porter, Selfridges and Lane Crawford.
In 2013, Cue Clothing Co. acquired a shareholding stake in Dion Lee as part of a strategic partnership to develop and accelerate the brand's domestic and international growth.
Cue Clothing has since stepped away from the brand following the VA to focus on its own core brands, Cue and Veronika Maine.