After 188 years in operation, major Australian retailer David Jones collapses into administration
Stores remain open during review
David Jones has appointed voluntary administrators McGrathNicol, while FTI Consulting will act as receivers and review the company. The retailer’s physical and online stores are to keep operating during the process.
Rent dispute preceded decision
Hours before the board voted to enter administration, Scentre, the owner of Westfield, said David Jones had not paid its October rent. Scentre said that meant the retailer was in breach of its tenancy agreement. Hill said the appointment of administrators and receivers would give the business “breathing space” and an opportunity to restructure.
A changing department store role
Jana Bowden, who teaches marketing at Macquarie University’s Business School, said the collapse signalled the “death knell” for the department store format. David Jones has been Australia’s oldest department store chain. The flagship stores in Sydney and Melbourne were a ritual for many families, particularly for their festive Christmas window displays. Bowden said city stores retained an upper-end feel, while suburban stores lacked excitement and “glitz.”
Key points
- David Jones has entered voluntary administration, putting thousands of jobs at risk.
- Its physical and online stores will continue operating during a review by FTI Consulting.
- Scentre said David Jones had missed its October rent and breached its tenancy agreement.
- Marketing academic Jana Bowden said the collapse signalled a threat to the department store format.