The creditors of Dion Lee Australian Enterprise entities have today resolved that the company be wound up and Antony Resnick and Henry Kwok of dVT Group be appointed as liquidators.
The second creditors meeting heard that while there had been interest from potential buyers of the brand no acceptable offer was as yet forthcoming.
dVT has to date realised more than $3 million in sales of merchandise after earlier being appointed voluntary administrators.
The liquidators noted that despite today’s resolution to wind up the company, Dion Lee retail stores in Australia are expected to continue operating until late September or early October.
The brand’s online site is expected to continue to trade through to early November or later.
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.