David Jones is on shaky ground. Here's what consumers should know

There are fears for the future of retailer David Jones with speculation it is about to enter voluntary administration.

The iconic department store chain has been behind on its rent and the board is reportedly considering its future.

If you are one of DJ's customers, here's what that could mean for you.

Should you spend your gift card now?

David Jones sells instore and electronic gift cards.

If you have one gathering dust, Erin Turner, CEO of the Consumer Policy Research Centre, said now is the time to spend it.

"The best thing you can do is use any gift card you already hold as fast as possible," she said.

"Don't wait, and while it's in this period of uncertainty, I'd also avoid buying a gift card because the possibility that you may not be able to use it in the future is real."

While the fate of the fallen retail giant is still unclear, and the implications for customers, Ms Turner said it was not worth waiting to find out.

If the department store chain enters voluntary administration that means an insolvency expert will be appointed to sort out a plan for its future.

Administrators could restructure David Jones, sell it or wind it up in a liquidation.

Ms Turner said the latter scenario is bad news for someone holding a gift card.

"You can lose the money," she said.

"Anyone who holds a gift card is considered an unsecured creditor, that means you're at the back of the line when it comes to recovering funds, you could end up with cents on the dollar or even nothing at all."

In what appears to be a coincidence, some David Jones customers were unable to redeem gift cards over the weekend, but the company confirmed to the ABC that was due to a temporary global outage for a third-party platform.

Retail expert Professor Gary Mortimer, from the Queensland University of Technology, said administrators would have to work out how to treat gift cards and loyalty points.

That could involve honouring gift cards, but placing new conditions on them.

"I recall that Barbeques Galore, for example, when they went into administration, the administrator honoured gift cards, but it required a subsequent purchase on top of the gift card amount.

"If you had a $100 gift card, you had to spend $200 in store to redeem that $100."

When retailer Dick Smith went into receivership in 2016 customers who put down deposits on items or had gift vouchers did not get their money back or have them honoured.

Consumer advocates, including Ms Turner, have argued funds from gift cards should be stored in trust to ensure people don't lose their money when a business goes belly-up.

Mr Mortimer said if David Jones went into administration the business could keep operating normally while furious work happens behind the scenes.

"It simply means that a third party will take over the management of that business and they will look to reformat it, restructure it, possibly downsize it to make it more sustainable and profitable."

Will you lose your lay-by deposit?

If you put a deposit down on a flat screen TV or another item, as long as David Jones continues to trade as a business there's an opportunity to get your item, according to Ms Turner.

If DJ's doors are still open, Ms Turner advises purchasing that item in full as soon as possible or negotiating to get your money back.

"When a company is in trouble you want to act as early as possible," she said.

You hit 'click' but you're yet to collect

If you've engaged in some online retail therapy but haven't received the product yet,

Ms Turner said you should be ok — provided David Jones has the item in stock and continues to trade.

However, there have been problems with other companies in financial strife where the orders weren't received.

"Sadly, this is a waiting game," she said.

"You're going to have to wait and see what happens next."

If you don't receive your purchase and you paid by credit card, it's best to contact your bank and initiate a charge back to try and get your money back.

What about an exchange or a refund?

If you have been putting off exchanging an unsuitable product or getting a refund for something that doesn't work, act now.

Ms Turner said shoppers should go in store to do this as soon as possible.

If David Jones won't provide a refund or exchange, shoppers still have rights under consumer law that may assist with getting a refund, repair or replacement from the manufacturer.

Could you land a bargain?

Mr Mortimer said consumers might even be able to land a bargain, depending on what any administrator does if they are appointed.

One option could be shifting excess stock to the busiest David Jones stores to maximise sales during the Christmas rush.