Australia’s David Jones enters administration after 188 years as retail pressures mount
A long-running retailer faces review
The retailer entered voluntary administration after 188 years, pointing to rising expenses, sluggish sales and supply chain strain. About 6,000 people work across its 38 stores in Australia and New Zealand.
Stores remain open for now
David Jones outlets will continue operating while FTI Consulting, the appointed receivers, examines the company’s operations. The review is expected to inform difficult decisions about the business. The company said the process would be handled carefully, while recognising that some stakeholders would be affected.
Department stores face changing habits
For generations, shoppers have relied on David Jones for clothing and accessories for important occasions, including formal events, school and graduation. But the retailer has faced more than a decade of pressure as customers move to online shopping and fast-fashion chains expand.
Key points
- David Jones entered voluntary administration after 188 years in business.
- The retailer cited higher costs, weak sales and supply chain pressures.
- About 6,000 employees work across 38 stores in Australia and New Zealand.
- FTI Consulting will oversee the review while stores remain open.