On a Wednesday in November, the receivers of David Jones announced that Australia's oldest department store, a retailer 188 years in the making, will shutter nineteen of its thirty-eight locations. It is the kind of reckoning that arrives when a long-loved institution can no longer carry the weight of its own history against a marketplace that has moved on around it. For more than six thousand people, the news turns a familiar shopping street into an uncertain future, and the stores will keep their doors open only until the end of the year.
David Jones to Close 19 Stores as Receivers Launch 'Urgent Restructure' Amid Mass Job Losses
Over 6,000 staff across 38 stores face job losses as 19 stores are identified for closure and consultation begins.
On a Wednesday in November, the receivers of David Jones announced that Australia's oldest department store, a retailer 188 years in the making, will shutter nineteen of its thirty-eight locations. It is the kind of reckoning that arrives when a long-loved institution can no longer carry the weight of its own history against a marketplace that has moved on around it. For more than six thousand people, the news turns a familiar shopping street into an uncertain future, and the stores will keep their doors open only until the end of the year.
On Wednesday, receivers FTI Consulting announced that David Jones, Australia's oldest department store, will close 19 of its 38 stores. The news came only a week after the 188-year-old retailer fell into voluntary administration. For the more than 6,000 people who work for the chain, it means that consultation has begun at every affected site, and most of those stores are expected to stop trading by the end of the year.
The closures stretch across the country, from Sydney's Parramatta and Hornsby to Melbourne's Highpoint, from Perth's Garden City to Sunshine Plaza in Queensland, reaching as far as Woden in Canberra and Newmarket in New Zealand. The stores will trade on for now, though no final closing date has been set.
The company now runs under two parallel appointments. FTI manages daily operations, while administrators McGrathNicol search for a buyer or new investment. The chain has been losing money for years, squeezed between online rivals and smaller upmarket stores, and the documents released this week show that the administrators had examined its finances months before the collapse. Some small suppliers are still waiting to be paid for stock delivered as far back as April.
The owner, Anchorage Capital, has long wanted a leaner David Jones, free of costly leases on weaker sites. It is expected to offer to buy the chain back. Whether that bid succeeds, and how many of the nineteen closures go ahead regardless, will shape what remains of the store for thousands of employees.
On Wednesday, receivers FTI Consulting announced that David Jones, Australia's oldest department store, will close 19 of its 38 stores. The chain employs more than 6,000 people, and staff at every affected site have now been drawn into a consultation process the receivers described as immediate.
The announcement comes a week after the 188-year-old retailer collapsed into voluntary administration. FTI said it would carry out an "urgent restructure of the business." The stores slated for closure will keep trading for now. There is no final closing date, but FTI said it expects them to stop trading by the end of the year.
The list spans much of the country. In New South Wales: Green Hills, Hornsby, Macarthur Square, Macquarie Centre, Parramatta, Warringah Mall and Wollongong Central. In Victoria: Glen Waverley, Highpoint and Malvern Central. In Western Australia: Carousel, Garden City and Hay Street Mall. In Queensland: Robina Town Centre and Sunshine Plaza. In South Australia: Marion and West Lakes. Woden in the ACT is also on the list, as is Newmarket in New Zealand.
The company is being run under a dual appointment. FTI, as receiver, holds day-to-day control of operations, while administrators McGrathNicol are looking for a buyer or a fresh injection of capital. The two roles run in parallel, which means the closures are proceeding even as the search for new money continues.
The upheaval follows years of steep losses. David Jones never found a profitable niche in a sector squeezed by online competitors on one side and stand-alone upmarket stores on the other.
Documents released late on Tuesday add to the picture. They show the administrators reviewed the finances of the private equity-owned chain months before it went into administration. They also show that some small suppliers are owed money for stock sent as far back as April, well before David Jones missed rent payments and fell into administration.
The owner, Anchorage Capital, has long wanted a slimmer David Jones, one free of long-term leases on underperforming sites. It is expected to put a proposal to the administrators to buy back the chain. Whether that bid succeeds, and how many of the 19 closures go ahead regardless, are the questions to watch. For thousands of staff, the consultation has already begun, and the year's end is the date FTI is working toward.
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