David Jones placed into voluntary administration, store closures and job losses expected

Australia’s 188-year-old department store David Jones has entered voluntary administration, raising concerns for its 6,000 employees and the future of its 38-store network. The board appointed administrators from McGrathNicol on Thursday, and the retailer’s main financier subsequently installed FTI Consulting as receivers to manage day-to-day operations and oversee a restructuring plan.

FTI is expected to keep core stores open while evaluating the business, but analysts say closures will likely target outer-suburban and regional malls, with flagship locations in central business districts more likely to remain operational. The move follows years of losses and rent arrears, culminating in a breakdown of negotiations with primary landlord Scentre Group, which owns Westfield.

“We have made a generous offer to Anchorage Capital that would have facilitated the continuation of David Jones trading and that offer has disappointingly been rejected by them,” Scentre Group said in a statement.

Unsecured creditors, including product suppliers and customers holding gift vouchers, face potential losses. Anchorage Capital Partners, which acquired David Jones in 2023, has lost operational control after failing to reverse the retailer’s decline.