David Jones faces possible collapse after 188 years of operation
Australia's oldest department store is reportedly on the brink of financial failure, with store closures under consideration and major luxury brands having withdrawn.
Australia's historic department store chain David Jones is said to be nearing financial collapse after 188 years in business. The company is reviewing its store portfolio and supplier contracts as it seeks a financially strong partner to stabilise operations.
"Erica Berchtold’s priority is to accelerate the execution of the business’s INSPIRE30 strategy and is in advanced discussions with key stakeholders about how David Jones is adapting to the ever-changing retailing landscape," a company spokeswoman told 7NEWS.
The retailer has reportedly fallen behind on payments to some suppliers and has lost several luxury partners, including Christian Dior, Gucci and Chanel. Berchtold, appointed in June, is tasked with improving cost efficiency and overall capability.
Industry analysts highlighted the broader challenges facing Australian retailers, citing tighter consumer spending amid rising interest rates and fuel prices. Business strategist Barry Urquhart warned that a strong holiday season would only postpone an inevitable outcome, describing the situation as a fundamental lack of liquidity.
Associate Professor Carol Tan of RMIT University said the store’s legacy alone cannot ensure its survival, but suggested that a reduction in the number of outlets could provide a path forward.
David Jones currently operates 38 stores across Australia and New Zealand and employs more than 5,000 staff. Retail property firm Vicinity reported a 6.5% decline in department store sales over the past three months.