David Jones to close 19 stores after entering voluntary administration

Receivers of David Jones announced on Wednesday that 19 of the retailer's stores will be closed as part of a restructuring effort following the company's entry into voluntary administration less than a week earlier. The decision, described by FTI Consulting as "difficult," will see the identified stores cease trading by the end of the year, with staff given a seven-day consultation period.

The closures include locations in New South Wales, Victoria, Western Australia, South Australia, Queensland, the Australian Capital Territory and New Zealand. The statement said the receivers believe the measures are unavoidable to give David Jones the best chance of a sustainable future.

David Jones, an 188-year-old retailer employing around 6,000 people, has been negotiating with landlords for rent relief and had previously considered keeping a smaller number of stores open. The company owes about $320 million, including $100 million to suppliers and trade creditors. Gift cards and store credits remain valid at the remaining stores, and the retailer is fulfilling existing paid orders and lay-by items through its warehousing network.