David Jones goes into administration, with store closures expected and thousands of jobs at risk
Quick Look
- David Jones, Australia's 188-year-old upmarket department store, has entered voluntary administration after years of losses and failed rent negotiations with landlord Scentre Group.
- McGrathNicol was appointed as voluntary administrators and FTI Consulting as receivers, placing more than 6,000 jobs across 38 stores at risk.
AI-generated summary
Why It Matters
David Jones has suffered years of steep losses and underperforming stores, falling behind on rent. Negotiations with primary landlord Scentre Group broke down, leading to the appointment of voluntary administrators from McGrathNicol and receivers from FTI Consulting.
Australia’s premier upmarket department store David Jones has collapsed into voluntary administration, putting thousands of jobs at risk and leaving the future of the 188-year-old retailer hanging in the balance.
The upheaval follows years of steep losses and underperforming stores that left the heritage retailer falling behind on rent, culminating in a breakdown of negotiations with its primary landlord, Westfield owner Scentre Group.
Staff were informed on Thursday that the David Jones board had appointed voluntary administrators from McGrathNicol, before the retailer’s main financier promptly installed FTI Consulting as receivers.
Under the dual appointment, FTI will take day-to-day control of operations, running the department store network while it restructures the business.
The process will almost certainly trigger immediate store closures, though receivers will try keep the core network open while hunting for fresh capital.
David Jones employs more than 6,000 staff across a network of 38 stores.
More details soon…
What to Watch
AI outlook — possibilities, not facts
Immediate store closures will occur while receivers hunt for fresh capital
Very likely · Within days
FTI Consulting will run day-to-day operations while restructuring the business
Very likely · Within weeks
Open Questions
- Which specific stores will close immediately?
- How many of the 6,000 staff will be affected by closures?
- What is the timeline for finding fresh capital?
- Will David Jones continue trading during administration?