19 stores to close: David Jones plan means half shut, triggering mass job losses under urgent restructure

Nineteen stores identified for closure

Receivers FTI Consulting said on Wednesday that David Jones would shut half its department store network. The company employs more than 6,000 staff across 38 stores. FTI said it had started immediate consultations with staff connected to the 19 stores selected for closure. Those locations will continue trading in the short term, and the receivers expect them to stop trading by the end of the year. No final closure dates have been announced.

The stores named for closure are Carousel, Garden City, Hay Street Mall, and other locations across Australia, along with Newmarket in New Zealand. The full list includes sites in Western Australia, Victoria, New South Wales, South Australia, Queensland, and the ACT.

Receivers and administrators have different roles

Under a dual appointment, FTI Consulting has day-to-day control of operations. Administrators McGrathNicol are seeking a buyer or a fresh injection of capital. The department store entered voluntary administration last week after years of steep losses. The retailer struggled to find a profitable position as online competitors and stand-alone upmarket stores reshaped the sector.

Owner may seek to buy chain

David Jones’s administrators said in documents released late on Tuesday that they had examined the private equity-owned chain’s finances months before it entered administration. Anchorage Capital, the private equity owner, has long sought a smaller version of David Jones without long-term leases on underperforming sites. It is expected to propose buying back the 188-year-old chain. Some small suppliers are owed money for stock delivered in April, before David Jones missed rent payments and entered administration.