David Jones placed in administration, search for buyers begins

Australia's oldest department store, David Jones, was placed under voluntary administration on Nov. 5 after nearly two centuries of operation. McGrathNicol has been appointed as the administrator and FTI Consulting staff are acting as receivers, according to a company statement. The retailer’s physical and online stores will continue to operate while the administrators explore potential buyers or recapitalisation offers.

"The current retail trading environment, rising costs, a significant and outdated retail footprint, and supply-chain challenges have led to this point," said Christopher Hill, a receiver from FTI Consulting.

The chain, owned by Anchorage Capital Partners since 2023, operates around 38 locations in Australia and New Zealand. Analysts noted that the traditional large-store format and long-term lease commitments have become difficult to sustain amid shifting consumer habits and a cost-of-living squeeze.

"We’ve changed how we shop, when we shop and where we shop," said Gary Mortimer, a retail professor at Queensland University of Technology. "Commercial leasing isn’t nimble. Maybe 70 years ago, it didn’t need to be."

David Jones chief executive Erica Berchtold said the company has a “well-developed plan on how to reset the business for the future,” but did not provide further details. Scentre Group, which owns the Westfield malls housing many David Jones stores, confirmed that rent had been paid through Sept. 30 and that the retailer occupies space in 17 Westfield centres. Negotiations with landlords on Nov. 4 did not result in a settlement, including proposals for rent relief and a reduced store network.