Australia’s oldest department store, David Jones, has announced that it will shut down half of its 38‑store network, a move that will result in significant job losses and a sweeping restructuring of the business. The decision comes after the retailer entered voluntary administration last week following years of steep losses.
Receivers FTI Consulting, which has been appointed to manage the company’s affairs, said it would proceed with an “urgent restructure.” 19 stores have been identified for closure, and the receivers have begun an immediate consultation process with staff at those locations. While the stores will continue trading for the time being, the receivers expect them to cease operations by the end of the year.
Under a dual appointment, FTI has day‑to‑day control of operations, while administrators McGrathNicol are tasked with finding a buyer or securing fresh capital. The move follows a long‑standing struggle to carve out a profitable niche in a market increasingly dominated by online competitors and stand‑alone upmarket stores.
David Jones employs more than 6,000 people across its network. The closures will affect a wide range of locations, including Carousel and Garden City in Western Australia, Glen Waverley in Victoria, Green Hills in New South Wales, and several others across the country. The list of stores slated for closure includes: Carousel, WA; Garden City, WA; Glen Waverley, VIC; Green Hills, NSW; Hay Street Mall, WA; Highpoint, VIC; Hornsby, NSW; Macarthur Square, NSW; Macquarie Centre, NSW; Malvern Central, VIC; Marion, SA; Newmarket, NZ; Parramatta, NSW; Robina Town Centre, QLD; Sunshine Plaza, QLD; Warringah Mall, NSW; West Lakes, SA; Woden, ACT; Wollongong Central, NSW.
The private equity owner, Anchorage Capital, has long sought a streamlined version of the chain, free from long‑term leases on underperforming sites. It is expected to propose a re‑purchase of the 188‑year‑old chain to the administrators. Meanwhile, some small suppliers are owed money for stock delivered as early as April, before the retailer missed rent payments and entered administration.
As the restructuring unfolds, the impact on employees, suppliers, and the broader retail community will be closely watched. The receivers have indicated that they will continue to operate the remaining stores while they seek a resolution that could preserve the legacy of David Jones for future generations.
Source: The Guardian World
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