David Jones enters voluntary administration as losses mount
The historic Australian department store has filed for voluntary administration after reporting a pre-tax loss of $95.5 million for 2025, prompting concerns about the future of its 38 stores.
Australia’s flagship department store David Jones has placed itself into voluntary administration following a pre-tax loss of $95.5 million for 2025 and mounting rent arrears at several Westfield locations. The retailer, which operates 38 stores and employs about 6,000 staff, has also halted gift-card sales and warned that new purchases will not be eligible for refunds.
Former supplier and Brisbane retail consultant Jellaine Dee said foot traffic had declined at most of the chain’s stores for years, noting that only a handful of locations attracted “really good foot traffic” even a decade ago. Dee, who sold her makeup brand Cherry Blooms to a private-equity firm in 2018, described David Jones as “slow to evolve” and compared its lack of innovation to the video-rental chain Blockbuster.
Suppliers such as Porter Jewellery and K-Juliet have reported that stock sent to the retailer may not be paid for, reflecting broader concerns about cash flow under the administration. Dee expects that a future buyer could trim under-performing stores and revamp the brand, but cautioned that a simple resale of the existing format would not address the underlying strategic issues.
David Jones chief executive Erica Berchtold said the company’s physical and online stores will continue to trade under the control of appointed receivers Christopher Hill, David McGrath and Joanne Dunn of FTI Consulting. She thanked customers, staff and partners and said a “well-developed plan” is in place to reset the business.
Committee for Melbourne chief executive Cath Evans called the development a “wake-up call” for the sector, stressing the importance of the Bourke Street store to Melbourne’s retail precinct and its wider impact on tourism and city life.
The receivers have described the administration as a “breathing space” to restructure the business amid rising costs, an outdated retail footprint and supply-chain challenges. No decision has yet been announced regarding store closures.