Renowned Australian fashion brand Dion Lee, worn by the likes of Taylor Swift and Dua Lipa, has called in the administrators.
Founded in 2009 by designer Dion Lee, the brand has garnered global recognition for its unique designs, high-fashion appeal and more recently when it was worn by the likes of Taylor Swift at the NFL Super Bowl.
The company operates six stores in Australia and one in the United States, and its products are sold through 160 outlets worldwide, however the voluntary administration will focus on the Australian operations with dVT Group called in to oversee the process.
“We are in the very early stages of our administration process and our focus right now is on speaking with the Australian and US-based team and getting across all the relevant operational and financial data,” administrator Antony Resnick said in a statement released Thursday evening.
“The Dion Lee brand has built global recognition and credibility in the world of high fashion. It is regularly worn by cultural icons and influencers. It is noted in the industry for its unique designs. All of which should attract both local and international investor interest.”
Despite the administration, retail stores and online channels will continue to operate. Resnick emphasised the brand’s global credibility, noting its popularity among cultural icons and influencers, which should attract both local and international investor interest.
“The Dion Lee brand is one of a handful of Australian fashion labels that has been able to break into international markets in recent years,” Resnick said.
Bernadette Olivier, CEO and co-founder of The Volte says the fashion industry is in its moment of reckoning “teetering on the edge of collapse”.
“The rise of TikTok and the increased popularity of Instagram stories and reels revealed new consumer habits,” says Ms Olivier.
“Consumers are turning online shopping into ‘online trying,’ often posting their ‘hauls’ to followers to decide which garments to keep while returning the majority.
“Retailers have been slow to identify this trend, and report as much as 50% of inventory sold online is returned, with a significant portion ending up in landfill or incinerated due to cost-effectiveness.
Oliver says brands must be more wiling to embrace and integrate with the circular economy.
“The resale economy is growing 10 times faster than the traditional apparel industry, indicating that consumer demand for circularity is permanent,” she added.
A full creditors report is being prepared.
