David Jones has been placed into voluntary administration and receivership for the first time in its 188 years of trading, with staff told on Thursday (5 November) that the board had voted to appoint voluntary administrators from McGrathNicol, Brisbane Times reported. The retailer's lenders then appointed FTI Consulting as receivers, who will run the business until it is restructured and put up for sale.
"David Jones' physical and online stores are continuing to trade under the control of the receivers, whilst they review the current operations," the receivers said in a statement published by Ragtrader. FTI Consulting's Christopher Hill, David McGrath and Joanne Dunn were appointed receivers and managers of ACP Riley Street Midco Pty Ltd, the parent company of David Jones Pty Limited, by its secured lender.
Queensland Stores
David Jones locations at Carindale, Indooroopilly Shopping Centre, Robina Town Centre and Sunshine Plaza are among stores across the country earmarked as highly likely to close, according to analysis by financial services firm MST Marquee reported by Brisbane Times. The receivers' statement did not name any stores for closure.
Analysts expect closures to hit outer-suburban and regional mall locations hardest, likely sparing premier CBD flagship stores, the Guardian reported, adding that receivers will try to keep the core network open while hunting for fresh capital. David Jones employs more than 6,000 staff across a network of 38 stores, according to the Guardian.
Recapitalisation or Sale
A transaction process seeking offers for a recapitalisation of the business or a sale as a going concern will commence immediately and will be managed by the voluntary administrators, McGrathNicol, the statement said.
Mr Hill said the current retail trading environment, rising costs, a significant and outdated retail footprint and supply chain challenges had led to this point. "Voluntary administration and receivership provides breathing space and an opportunity to restructure the business. We will manage this process carefully, mindful of the impact on some stakeholders but also recognising the need for difficult decisions," he said.
David Jones chief executive Erica Berchtold said the company had "a well-developed plan on how to reset the business for the future" and would work with the administrators, the receivers and its secured lender. "David Jones is an iconic company and so many Australians have stories and memories of visiting DJ's stores," she said.
Westfield Owner Scentre Group
The collapse followed a failure by the retailer's private equity owners to reach a deal with major landlord Scentre Group on store closures and its rent bill, Brisbane Times reported. David Jones' board of directors rejected a counter-proposal by Scentre on Wednesday (4 November).
In an operating update to the ASX on Wednesday, reported by the ABC, Scentre Group said David Jones occupies space at 17 Westfield destinations, representing approximately 200,000 square metres, and had paid all rent up to 30 September 2026. Scentre said David Jones had provided $45 million in bank guarantees across the Westfield Australia/New Zealand portfolio, which can be applied against any unpaid rent.
"We have made a generous offer to Anchorage Capital Partners that would have facilitated the continuation of David Jones trading," Scentre Group chief executive Elliott Rusanow said in a statement. "That offer has disappointingly been rejected by them."
Gift Cards and Suppliers
Unpaid product suppliers and shoppers holding unredeemed gift vouchers are among the unsecured creditors most at risk, the Guardian reported. Macquarie University professor Jana Bowden urged shoppers to go to stores and use their gift cards. "There's an imminent risk to gift cardholders. They need to get to the stores and spend those immediately before they are unable to," she said, according to Brisbane Times.