David Jones faces potential sale as losses mount

Australia's oldest department store, David Jones, is reported to be close to a sale after posting a $95.45 million pre-tax loss for 2025, following a $74.12 million loss in 2024. The retailer, now reduced to 38 stores, has struggled with declining sales, supplier payment delays and the withdrawal of several luxury and mid-range brands.

Anchorage Capital Partners, which acquired David Jones in 2022, is said to be seeking a buyer at an asking price of roughly $100 million, a figure that would allow the firm to recover its 2022 investment.

Luxury labels such as Gucci, Chanel and Christian Dior have ended their relationships with the chain, and other brands including Country Road, Witchery and Mimco plan to remove concession stands from David Jones locations beginning in February.

A recent technical outage that temporarily disabled gift-card transactions was attributed to a global failure of a third-party platform, prompting advice for customers to use their cards promptly.

"David Jones is continually evolving its brand portfolio to ensure it remains relevant to its customers and supports the INSPIRE30 reset strategy," a company spokesperson said, adding that the retailer is reviewing trading terms and business models with brand partners.

Retail analyst Barry Urquhart told 7NEWS that the company is "very much on the precipice" and that further store closures are possible. The chain closed two New South Wales stores, Castle Towers and Tuggerah, in January after more than three decades of operation.

Industry observers suggest that survival may depend on accelerating store closures, reducing overheads and expanding digital sales channels.