Australian department store chain David Jones has been placed in voluntary administration after 188 years of operation, triggering an urgent restructure that will close 19 stores across Australia and New Zealand.
Chief executive Erica Berchtold said in a statement that the retailer’s store portfolio was no longer the right shape for the business, noting that the restructure aims to create a financially sustainable network for the future.
“David Jones is an iconic company and so many Australians have stories and memories of visiting DJ's stores” said chief executive Erica Berchtold.
Receiver Christopher Hill cited the retail trading environment, rising costs, and an outdated retail footprint as factors in the collapse.
“Voluntary administration and receivership provides breathing space and an opportunity to restructure the business” said receiver Christopher Hill.
The company’s private equity owner, Anchorage Capital Partners, previously sought to slim down the business by shedding long-term leases on underperforming sites, according to The Guardian, according to Theguardian.
Financial troubles at the 188-year-old retailer escalated after months of mounting losses, including a $95.5 million loss recorded in 2024/25 following a $74 million loss in 2023/24, Namoi Valley Independent reported.
Receivers FTI Consulting announced that 19 stores will cease trading by the end of December, placing staff members into an immediate consultation period.
The affected locations include seven stores in New South Wales, three in Victoria, two in Queensland, two in South Australia, one in the Australian Capital Territory, and the chain’s sole New Zealand store in Auckland.
| State / Territory | Closing Locations |
|---|---|
| New South Wales | Green Hills, Hornsby, Macarthur Square, Macquarie Centre, Parramatta, Warringah Mall, Wollongong Central |
| Victoria | Glen Waverley, Highpoint, Malvern Central |
| Queensland | Sunshine Plaza |
| South Australia | West Lakes |
| ACT & New Zealand | Woden (ACT), Newmarket (Auckland) |
While the identified locations prepare to shutter, primary secured lender Hilco Global has stationed representatives inside those stores to accelerate sales and promotional activity, The Guardian reported.
Administrators from McGrathNicol have set a deadline of Friday afternoon for prospective buyers to submit expressions of interest to purchase or recapitalize the historic department store chain.
McGrathNicol’s Matthew Hutton noted interest from parties with experience in turning around retail department stores, according to SmartCompany.
Documents released to creditors revealed that Anchorage Capital convened with insolvency specialists as early as July to discuss financial performance and potential restructuring scenarios before appointing voluntary administrators.
Charter Hall Long WALE REIT, part-owner of the flagship David Jones property on Elizabeth Street in Sydney, confirmed that its distribution guidance remains on track despite the tenant’s entry into administration, citing a bank guarantee covering approximately a full year of rent.
The shop assistants union, represented by the Shop, Distributive and Allied Employees Association, noted the profound impact of the administration on the workforce and the historic brand.
Charles Edward Lloyd Jones, a fifth-generation member of the founding family who departed the company in 1993, emphasized that any future owner must establish a genuinely distinct retail offering and return to intensive staff training methodologies rather than entering into a race to the bottom on pricing.
Industry observers pointed to years of undercapitalization and the rise of digital competition as core pressures leading up to the voluntary administration.
South African retail conglomerate Woolworths Holdings previously acquired the department store group for A$2.1 billion in 2014 before selling the asset to Anchorage Capital Partners in 2023 for just under $100 million. FTI Consulting and McGrathNicol continue to manage the dual appointment structure, with physical and online storefronts remaining operational during the transitional phase.
Earlier coverage: David Jones's Finances Were Reviewed and Restructuring Flagged Months Before It Fell Into Administration