In the long life of a department store that has stood in Australian cities for nearly two centuries, a moment of reckoning has arrived. Receivers at FTI Consulting have confirmed that David Jones will shutter three of its five Western Australian stores, the Hay Street flagship in Perth, Garden City and Carousel, as part of nineteen closures across the nation. The decision, framed as unavoidable if the business is to survive at all, leaves hundreds of working lives in uncertain suspension while the stores themselves still open their doors for the approaching holiday season.
David Jones to Close Three of Five WA Stores, Including Hay Street Flagship, as Administrators Seek Survival
Hundreds of jobs are expected to be cut across the affected David Jones stores, with the receivers acknowledging a material impact on staff.
Karrinyup and Claremont are set to remain open for now.
Mark
Three of five WA stores, including the Hay Street flagship. Why is this landing so hard?
Mimi
Because the flagship is the symbol, and it's going alongside Garden City and Carousel. Only Karrinyup and Claremont are left in the state, and that's "for now."
Mark
The receivers say the closures are unavoidable. What's the logic?
Mimi
They say David Jones can only continue as a viable business if it restructures, and that this follows a plan management was already working on before the appointment. Erica Berchtold's letter to suppliers says the store portfolio was no longer the right shape.
Luke
Worth noting that's the receivers' and the CEO's account. Nothing in the reporting independently tests whether closing 19 stores is the only route to viability.
Mark
What about the jobs?
Mimi
Hundreds are expected to go, and the receivers acknowledge a material impact on staff. The company employs 6000 people overall.
Luke
But "hundreds" is an expectation, not a count. The receivers gave no figure, and we don't know how many are in WA specifically.
Mark
And the timing?
Mimi
Closure is anticipated by the end of the year, with trading expected through Black Friday.
Luke
Anticipated, not fixed. No last trading day has been confirmed for any store.
Mark
So what's actually settled?
Luke
The three WA closures and the 19 national total are confirmed by the receivers. Dates, job numbers and whether Karrinyup and Claremont stay open long term are not.
Der Puls
- Receivers FTI Consulting have confirmed the Hay Street flagship, Garden City and Carousel will close, part of nineteen nationwide shutdowns.
- Hundreds of jobs are expected to go across a workforce of about 6000, yet no figure has been given and staff are left waiting.
- Management is steering a restructure it says is the only path to a viable, sustainable David Jones, with the chief executive writing to suppliers to explain the reasoning.
- Karrinyup and Claremont stay open for now, but the phrase 'for now' hangs over them as the stores head into Black Friday trading.
- Final closure dates are still unset, with the stores expected to stop trading by year's end and the outcome of the administration still unknown.
In the long life of a department store that has stood in Australian cities for nearly two centuries, a moment of reckoning has arrived. Receivers at FTI Consulting have confirmed that David Jones will shutter three of its five Western Australian stores, the Hay Street flagship in Perth, Garden City and Carousel, as part of nineteen closures across the nation. The decision, framed as unavoidable if the business is to survive at all, leaves hundreds of working lives in uncertain suspension while the stores themselves still open their doors for the approaching holiday season.
On Wednesday, receivers FTI Consulting confirmed that David Jones will close three of its five Western Australian stores: the Hay Street flagship in Perth, along with Garden City and Carousel. They are among nineteen stores to be shut across the country, as the 188-year-old retailer goes through an urgent restructure.
No closure date has been fixed yet, though FTI expects the affected stores to stop trading by the end of the year. With Black Friday only weeks away, the stores are set to keep trading through the peak period. The receivers called the decision difficult and said it would have a material impact on many members of the team. They pledged fairness and respect for staff, while insisting the steps were unavoidable if the business is to remain viable.
Hundreds of jobs are expected to go, but no figure has been released. David Jones employs about 6000 people, so the true scale of the cuts across the nineteen stores is still unclear. In Western Australia, Karrinyup and Claremont will stay open for now, a qualification that leaves their long-term future open.
In a letter to suppliers seen by The West Australian, chief executive Erica Berchtold said the store portfolio was no longer the right shape for the business and that the closures aim to build a financially sustainable network. She acknowledged the news would be hard to hear and thanked brand partners for their support. What remains to be seen is when each store will close, how many people will lose their jobs, and whether the restructure is enough to save the retailer.
On Wednesday, receivers FTI Consulting confirmed that David Jones will close three of its five stores in Western Australia: the Hay Street flagship in Perth, Garden City and Carousel. The three are part of 19 stores set to be shut nationally, in what the receivers described as an urgent restructure of the 188-year-old retailer.
No final closure date has been set. FTI anticipates the affected stores will stop trading by the end of the year. With Black Friday sales only weeks away, David Jones expects the stores to keep trading through the peak period.
The receivers said the restructure follows a plan for the business that management had been working on before the receivers were appointed. In their statement, they called it a difficult decision and acknowledged that it will have a material impact on many individual members of the David Jones team. They committed to treating all employees with fairness and respect through the process. They also said the impacts are highly regrettable but that the steps are unavoidable if David Jones is to continue as a viable business, and that the measures give it the best chance of a sustainable future.
Hundreds of jobs are expected to go. The receivers did not give a figure for expected job losses. David Jones currently employs 6000 people, so the number affected across the 19 closing stores remains unstated.
In Western Australia, the two stores that survive for now are Karrinyup and Claremont. The wording matters: they are set to remain open for now, not guaranteed beyond the restructure.
Chief executive Erica Berchtold set out the reasoning in a letter to suppliers, which was seen by The West Australian. She wrote that the company's store portfolio was no longer the right shape for the business, and that the closures are meant to create a network that is financially sustainable. She acknowledged the news would be difficult to hear and said it was not taken lightly. She described brand partners as an important part of the David Jones story and thanked them for their support, their partnership and the care they show for customers and staff.
The last day of trade for each store is still to be confirmed. The things to watch are the closure dates, the number of jobs lost and whether the restructure is enough to keep the retailer alive.
Bemerkenswerte Zitate
The store portfolio was no longer the right shape for the business.— Erica Berchtold, David Jones chief executive, in a letter to suppliers
The steps are unavoidable if David Jones is to continue as a viable business.— FTI Consulting, receivers
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