Thousands of jobs at risk as David Jones goes into administration; store closures expected
Administrators and receivers appointed
David Jones’ board appointed McGrathNicol as administrators on Thursday, and staff were informed of the decision. The retailer’s main financier then appointed FTI Consulting as receivers. Under the arrangement, FTI will manage daily operations. McGrathNicol will look for a buyer or an injection of fresh capital.
Store network and jobs at risk
The 188-year-old department store employs more than 6,000 people across 38 locations. Analysts expect closures to affect outer suburban and regional malls most heavily, while premier CBD flagship stores are likely to be spared. Hill said the process would be managed carefully, while acknowledging the need for “difficult decisions.”
Creditors and shoppers exposed
Creditors are scheduled to meet next week, according to the Shop, Distributive and Allied Employees’ Association. The administration could leave unsecured creditors facing substantial losses. Unpaid product suppliers and shoppers with unredeemed gift vouchers are among those most exposed. Some suppliers had already started redirecting stock to their own retail outlets.
Calls for a smaller future
Dwyer said the aim was not to see David Jones disappear, and suggested a smaller business could rebuild. Administrators are seeking a buyer or new funding as the retailer’s future remains uncertain.
Key points
- David Jones entered voluntary administration after years of steep losses.
- More than 6,000 staff across 38 stores are at risk.
- Analysts expect outer suburban and regional locations to face the greatest closure risk.
- Unpaid suppliers and shoppers with unredeemed vouchers could suffer losses.