Administrators Reveal Earlier Review of David Jones' Finances Before Administration
Administrators say David Jones' finances were examined six months prior to its administration, with restructuring talks beginning three months earlier, while the retailer continued to purchase new stock and delayed payments to suppliers.
Administrators McGrathNicol disclosed that they first reviewed David Jones' financial information in April 2026 at the request of the retailer's owners, Anchorage Capital. A subsequent meeting in July involving group director Simon Woodhouse and major lender Hilco discussed the company's performance and the possibility of restructuring, though Woodhouse left when the restructuring topic was raised and no working group was established.
According to the administrators, the retailer continued to acquire new merchandise and placed small suppliers on tiered, extended payment terms, with brands required to accept larger discounts for quicker payments. The firm announced on Thursday that it could not meet its debt obligations, prompting concerns that unsecured creditors, including product suppliers and holders of unredeemed gift vouchers, could face significant losses.
McGrathNicol said it was re-engaged on 22 October to help plan a potential voluntary administration and held five further meetings over the next two weeks. The company paid the firm $1 million upfront to run the administration and expects to secure an additional $3 million-$4 million in funding. A creditors' meeting is scheduled for 17 November, with a request to postpone the usual second meeting until early April 2027 to allow more time for a sale or additional financing.
FTI Consulting, overseeing day-to-day operations during the administration, reported that the business remains fully operational. Anchorage Capital, David Jones and Hilco were contacted for comment.