David Jones continues trading and revises refund policy amid administration
Receivers of David Jones said the retailer remains fully operational, reported strong sales and outlined new refund and exchange rules for purchases made before November 7.
Receivers FTI Consulting reported that David Jones has maintained normal store and online operations since the department-store chain entered voluntary administration on November 7. The statement said foot traffic and sales have been at high levels since the receivers were appointed, and the business is placing replenishment orders with suppliers that have confirmed trading agreements, with support from Hilco.
The retailer has updated its refund and exchange policy for items bought before November 7. Customers have 30 days to return most items, with an additional five days for online orders. Returns are not accepted for gift cards, food, furniture and bedding. The changes are posted on the company’s website. Gift cards and existing store credits remain redeemable at all open locations, although new gift cards are no longer being sold.
David Jones chief executive Erica Berchtold said the physical and online stores will keep trading under the receivers’ control while operations are reviewed. She added that the company has a plan to reset the business and will work with administrators, receivers and the secured lender.
"David Jones is an iconic company and so many Australians have stories and memories of visiting DJ’s stores, and I thank customers, our team members and our partners for their continued support during this period," Berchtold said.
FTI consultants Christopher Hill, David McGrath and Joanne Dunn, appointed as receivers, said voluntary administration provides a period to restructure the business amid a challenging retail environment, rising costs and supply-chain issues. They emphasized that final decisions will be communicated first to employees and other stakeholders and asked that speculation be avoided.
The receivers noted that some brand partners have withdrawn from certain stores but overall engagement with trade partners remains positive. Stores, including several Westfield locations, are expected to close before Christmas, putting thousands of jobs at risk. Reports suggest a potential buyer may emerge, with rival Myer also mentioned as a possible interested party.