Small Australian suppliers report delayed payments as David Jones enters administration

Australian boutique suppliers say they have not been paid for goods delivered to David Jones before the retailer was placed in administration on Thursday. Beysis, a Sydney-based brand that supplied water bottles and other drinkware, shipped a container worth tens of thousands of dollars to the department store’s flagship locations and agreed to a 14-day payment term in exchange for a price reduction. The company says the payment has not been received after several weeks, and it has received no response from the retailer.

Slowdown Studio, which provides artist-designed woven blankets, invoiced David Jones for almost $75,000 and did not receive the scheduled payment. Co-founder Jacob Leung said the company may recover only a small portion of the amount and is considering changing its terms to require payment before delivery.

Receivers FTI Consulting have taken day-to-day control of David Jones operations, while administrator McGrathNicol is seeking a buyer or new capital. A creditors’ meeting is expected to be scheduled for next week.

According to several suppliers, the retailer offered tiered payment terms of up to six months, with smaller brands forced to accept deeper discounts for faster payments. Suppliers have been advised that they have no legal right to retrieve unsold stock, even when invoices remain unpaid, while David Jones continues to sell the merchandise.

Luxury brands such as Gucci have removed their products from David Jones stores, citing concerns about a possible immediate closure. Small suppliers say the lack of cash flow comes at a critical time before the holiday shopping season, affecting staffing, marketing budgets and inventory purchases.