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David Jones enters administration, thousands of jobs at risk
Australia's oldest department store has been placed into voluntary administration after 188 years in business
- Iconic Australian department store David Jones has been placed into voluntary administration by its owners.
- After 188 years in business, the retailer is expected to be restructured by FTI Consulting, which will likely involve the closure of some stores.
- David Jones is Australia’s oldest department store, and the oldest department store in the world to have continuously traded under one name.
David Jones, Australia’s oldest department store, has been placed into voluntary administration after 188 years in business.
This morning Christopher Hill, David McGrath and Joanne Dunn of FTI Consulting were appointed as receivers by David Jones’ owner, Anchorage Capital partners.
David Jones’ CEO Erica Berchtold and the company’s directors also appointed McGrathNicol as voluntary administrators.
David Jones currently operates 38 stores across Australia and New Zealand, employing more than 6000 staff.
The exact nature of the closures, and the future of staff, remains unclear at this point.
Receivers said for the immediate future, all David Jones’ physical and online stores will continue to trade as they review current operations.
Berchtold said she was aware of what this step meant for a brand that was held dear by many Australians.
“David Jones is an iconic company and so many Australians have stories and memories of visiting DJ’s stores and I thank customers, our team members and our partners for their continued support for David Jones through this period,” she said.
“We have a well-developed plan on how to reset the business
for the future and will be working with the Administrators, the Receivers and our secured lender as we continue to pursue that reset of the business”.
A transaction process seeking offers for a recapitalisation of the business or a sale will commence immediately, and will be managed by the administrators, McGrathNicol.
Collapse comes after Westfield owner reveals rent shortfall
The collapse of David Jones into administration comes a day after Scentre Group, the owner and operator of Westfield shopping centres, revealed its exposure to the retailer.
Seventeen David Jones stores are located within a Westfield shopping complex.
In a trading update yesterday, Scentre Group said David Jones had paid all of its rent up to September 30, but no more after.
“David Jones occupies space at 17 Westfield destinations, representing approximately 200,000 square metres,” it said in a statement.
“The gross rent from these David Jones stores in calendar year 2026 is $45 million (SCG share). This gross rent represents $352 per square metre compared to the portfolio’s average gross rent for all stores of $942 per square metre.
“Gross rent from these stores represents approximately 1.8 per cent of the Group’s gross rent.”
Topics: Business, David Jones, Retail