David Jones faces administration after landlord talks collapse

David Jones, the historic Australian department-store chain, is likely to enter administration after its private-equity owner, Anchorage Capital Partners, could not reach an agreement with its primary landlord, Scentre Group, the owner of Westfield. The breakdown in talks follows a period of significant losses, reduced consumer spending and a series of underperforming stores that left the retailer behind on rent payments.

Scentre Group’s chief executive Elliott Rusanow said the retailer had not paid rent since September, putting it in breach of its lease. He added that Scentre had offered a proposal to keep David Jones trading, which Anchorage rejected.

Sources familiar with the situation, who were not authorized to speak publicly, indicated that the next step would be the appointment of administrators. An administrator would aim to keep stores open through key sales periods such as Black Friday and the Christmas season to preserve cash flow.

A David Jones spokesperson said chief executive Erica Berchtold was in advanced discussions with key stakeholders, reviewing the store portfolio and trading terms with suppliers and brand partners. The retailer has been seeking to renegotiate lease terms and reduce its store count from 38 locations, targeting a long-term network roughly one-third of its current size.

Industry observers note that mid- to up-market department stores have struggled for years, with recent inflation and cost-of-living pressures worsening conditions. RMIT University advertising expert Prof. Robert Crawford said the retailer has faced increasing competition from discount chains and luxury brands that sell directly to consumers, making adaptation to modern retail models challenging.