Cue Clothing and Veronika Maine brands will close 26 stores across Australia as the embattled brand fights off permanent closure.
Receivers FTI Consulting said the stores would start closing from Thursday, although it did not provide the details of locations or brands.
Customers will still be able to shop in stores until stock levels are depleted.
Affected staff will be redeployed into continuing stores where possible.
The update follows Cue Clothing Co going into voluntary administration and receivership on September 15. Kate Warwick and Vaughan Strawbridge of FTI Consulting were appointed as receivers.
“As part of the sale process, parties were asked to identify the stores they would be interested in acquiring as part of any potential transaction,” FTI shared in a statement.
“Based on the feedback received and the NBIOs (Non-Binding Indicative Offer) submitted, there is a common group of stores parties have indicated they would not be seeking to continue with.
“As a result, 26 stores will be closed across both brands.”
Earlier this week, it was revealed Cue Clothing had debts totalling $55m before it entered into administration.
According to the minutes of the first creditor meeting, the main operating entity Cue Co alone owed $42.12m, while Cue NZ and Cue International (NZ) owed a further $12.88m.
Major creditors include the Australian Taxation Office, which is owed $1.46m, and shopping centre giant Scentre Group, which is owed more than $6.22m.
Thirty seven employees lodged claims to creditors, with one employee saying they are owed $82,600 in wages and entitlements.