David Jones Newmarket Among 19 Stores Set to Close as Receivers Announce Urgent Restructure

Staff at David Jones were told on Wednesday that their stores are among 19 slated to close, and that a seven-day consultation process has begun. The news reached the Newmarket store in Auckland, the chain's only location in New Zealand, as receivers announced an urgent restructure of the business.

In a statement to 1News, receivers Christopher Hill, David McGrath and Joanne Dunn of FTI Consulting confirmed Newmarket would be shut along with 18 stores in Australia. They described the restructure as a difficult decision, made in line with a plan that management had been developing for the company's future before the receivers were appointed.

The 19 stores will keep trading for now. The receivers said there is no final closure date, but they expect the stores to stop trading by the end of the year. Staff associated with all 19 locations were informed the same day, and the consultation period will run over the following seven days.

The Newmarket store opened in 2019 and was initially heralded as an anchor tenant for the newly opened shopping centre. Its closure would end the brand's New Zealand presence.

The broader business has collapsed into receivership and administration after a rental dispute and falling profits left it on the brink. David Jones has up to 6000 staff across its 37 Australian stores, and all of them are waiting to learn whether the process will end or preserve their jobs. With 19 stores now identified for closure, many of those jobs are directly in question.

Administrators are looking for a buyer or a recapitalisation. McGrath Nicol's Matthew Hutton said they have seen an "extraordinary" level of interest, which reflects a history as an Australian shopping destination dating to 1838. He said they are engaging with domestic and international parties experienced in turning around and running successful department stores. Expressions of interest must be filed by close of business on Friday.

One voice from the founding family has weighed in. Charles Edward Lloyd Jones, 68, was a fifth-generation family member to work in the business, and the last. He left in 1993 after finishing as manager at the Chatswood store on Sydney's lower north shore, having also managed at Bankstown and Bondi Junction. His career included work in Malaysia and Hong Kong and a spell at rival Myer. He told AAP that without a unique offer, retail becomes a race to the bottom on price, which leads to staff cuts and worse service. Asked whether he had ever circled a David Jones store looking for someone to serve him, he said: "Too many times."

He argues any new owner will need to shrink its floor space and store numbers and develop a distinctive offering, or face the same situation again in three to five years. He also says management needs to get out from behind the desk and onto the shop floors. He pointed to the period from the post-war years to the late 1990s as a golden era, when the chain brought brands such as Dior and George Jensen to Australia and drew on leaders with Defence Force experience. He has been out of the business for about 30 years and feels disconnected from it, but said that if he worked there now he would be shattered, and that he understands the staff's anxiety.

The next week brings the end of staff consultation and the Friday deadline for expressions of interest, with closures expected by the end of the year.