• Analysis
David Jones administration puts more than 6,000 department store jobs at risk
David Jones, the 188-year-old Australian upmarket department store chain, has entered voluntary administration, leaving thousands of jobs at risk. Staff were told on Thursday that the board had appointed administrators from McGrathNicol, and the main financier has installed FTI Consulting as receivers.
Administrators and receivers appointed
The David Jones administration has placed the future of the upmarket chain - and the jobs of its more than 6,000 staff - in doubt. On Thursday, staff learned that the board had turned to McGrathNicol, naming its people as voluntary administrators.
The company's chief lender moved quickly in response, bringing in FTI Consulting as receivers. Under this two-track arrangement, the receivers run the department store network's daily trading while carrying out a restructuring of the business.
A rent dispute with Westfield's owner
The path into administration ran through years of heavy losses, stores that kept underperforming and rent left unpaid - ending with talks that collapsed between the retailer and its primary landlord, Scentre Group, which owns Westfield. Scentre Group said on Wednesday that no rent had been received since September. In a statement, Scentre Group said:
We have made a generous offer to Anchorage Capital that would have facilitated the continuation of David Jones trading and that offer has disappointingly been
What happens to the stores and staff
Immediate closures are expected, though the receivers aim to keep the core network trading while they look for fresh capital.
- •Closures are expected to fall hardest on outer-suburban and regional mall stores, according to analysts.
- •Premier CBD flagship locations are likely to be spared.
- •More than 6,000 people work across the 38-store network.
- •It is the first administration in the company's 188-year history.
Anchorage Capital Partners, which acquired David Jones from South Africa's Woolworths in 2023, has lost operational control as a result.
Creditors and gift voucher holders
Substantial losses are expected among unsecured creditors. Suppliers left out of pocket for products, and shoppers carrying unredeemed gift vouchers, are seen as most exposed as the restructuring proceeds.
