David Jones has told staff and suppliers that half of its stores will close after the peak Christmas trading period, Brisbane Times reported. In Queensland, the list names Robina Town Centre on the Gold Coast and Sunshine Plaza on the Sunshine Coast.
SmartCompany reported that receiver FTI Consulting confirmed in an update on Wednesday (11 November) that 19 of the 38 David Jones stores will close in what it described as an "urgent" overhaul of the business. SmartCompany said no definitive closure date had been given, but the stores were likely to cease trading by the end of the year.
"The identification of stores to close is the result of a review conducted to ensure the business is sized appropriately and on a sustainable financial footing for the future of David Jones," read the FAQ document issued to suppliers, according to Brisbane Times.
The closures are expected to trigger the axing of thousands of staff from a roster of around 6000 employees, Brisbane Times reported. Other stores on the list are in NSW, Victoria, Canberra, Western Australia and South Australia, and SmartCompany's list also includes Newmarket in New Zealand.
Brisbane Stores Not on the List
David Jones has four stores in Brisbane, at Carindale, Chermside, the CBD and Indooroopilly, and a second Gold Coast store at Pacific Fair. None of these appears on the closure list reported on Wednesday.
Before any closures were announced, Brisbane Times reported on 5 November that analysis by financial services firm MST Marquee expected all Queensland stores bar Chermside and Pacific Fair would close. QUT professor and retail expert Gary Mortimer said at the time he believed the CBD store would remain open. "QueensPlaza is a premium destination. That would be a store I would imagine would remain," he said.
"It is the oldest department store in the world, older than Harrods, older than Macy's. There's a lot of nostalgia and history connected to that brand, particularly here in Queensland," Mortimer said.
Gift Cards and Creditors
The McGrathNicol creditors page says its voluntary administrators were appointed to David Jones Group on 5 November, with FTI Consulting appointed as receivers and managers. SmartCompany reported FTI was appointed by lender Hilco Capital, and that expressions of interest for the 188-year-old business are due at the end of this week.
Gift cards can continue to be used, although new ones are no longer available for purchase, Brisbane Times reported. "Our stores continue to trade under updated policies and procedures, including click and collect, online orders, returns and exchanges," the document said.
Suppliers have been invited to a first creditors' meeting at 11am on Tuesday (17 November) via Zoom, with proof of debt forms due by 4pm on 16 November, according to Brisbane Times.