David Jones enters voluntary administration after 188 years, 6,000 jobs at risk
Australia's oldest department store chain will keep trading while administrators and receivers review a business hit by losses and unpaid rent.
David Jones, the department store chain founded in Sydney in 1838, has entered voluntary administration, putting thousands of jobs at risk, the BBC, ABC News, SBS News and The Australia Today reported on Thursday.
The board appointed McGrathNicol as voluntary administrators on Thursday morning, The Australia Today reported, citing the AFR. Secured lender Hilco Capital separately appointed Christopher Hill, David McGrath and Joanne Dunn of FTI Consulting as receivers and managers. The BBC said the administrators had confirmed the physical and online stores would keep operating during the review.
The BBC put the workforce at about 6,000 across 38 stores, 17 of them in Westfield centres. The Australia Today said the retailer employs more than 6,000 people in Australia and New Zealand, and that up to 26 stores could be affected. It had reportedly been considering cutting the network to about 12 stores.
The collapse followed failed talks with Westfield owner Scentre Group. Scentre said David Jones had not paid its rent and was in breach of its tenancy agreements. The BBC reported the missed rent was for October, while The Australia Today said no rent had been paid since 30 September. Scentre said it held $45 million in bank guarantees across Australia and New Zealand. Its chief executive, Elliott Rusanow, told news.com.au the company had offered owner Anchorage Capital Partners help that would have let the retailer trade through Christmas.
"We understand the current retail trading environment, rising costs, a significant and outdated retail footprint, and supply chain challenges have led to this point," Mr Hill told the BBC. He said the appointments would give the business "breathing space" to restructure.
Anchorage bought David Jones from South Africa's Woolworths Holdings in 2023. The Australia Today reported a pre-tax loss of $95.5 million in the 2025 financial year, after a $74.1 million loss the year before, and a sales fall of almost 9 per cent. The retailer also missed the 30 October deadline to lodge its 2026 accounts with ASIC. Country Road Group plans to scale back its concessions from early 2027, and Dior, Gucci and Chanel have withdrawn or reduced products.
Hilco said it would support the business "to keep trading while it is recapitalised and new owners are found". Charter Hall Long WALE REIT, which owns half of the Elizabeth Street store in Sydney, told the ASX it holds a bank guarantee equal to about 12 months' rent.
ABC News reported that shares in rival Myer rose 10.9 per cent to 26 cents. Gary Mortimer of the Queensland University of Technology told SBS News that David Jones could follow Saks Fifth Avenue in the United States, which came out of administration with 15 stores, down from 33.
Gerard Dwyer, national secretary of the Shop, Distributive and Allied Employees' Association, told the ABC the union's priorities were saving jobs and protecting entitlements. The Australia Today reported that the chief executive and Anchorage representatives were expected to address staff at the Melbourne headquarters.
Sources: BBC News, Australia's oldest department store David Jones folds after 188 years; The Australia Today, Australia’s 188-year-old iconic department store David Jones enters administration, putting 6,000 jobs at risk; ABC News, 'Not inconceivable' David Jones could disappear as retailer collapses — as it happened; SBS News, How David Jones could emerge from administration a very different retailer.
