David Jones is under financial stress as its private equity owner Anchorage Capital and lender Hilco Capital work to secure its future beyond Christmas, amid $95.5 million in losses and supplier reductions.
David Jones, the 188-year-old Australian department store, is in a race against time as its private equity owner Anchorage Capital and primary lender Hilco Capital work to stabilize the retailer amid mounting financial pressures. The company reported a $95.5 million pre-tax loss for the year to June 29, 2026, with sales falling 8.7% to $2 billion, while underlying earnings declined 13.2% to $176.48 million SMH.
The increased attention follows David Jones’ announcement of a A$95.45 million pre-tax loss, which is higher than the A$74.12 million loss recorded in FY2024, as reported by Channelnews. The retailer has shut down certain locations, such as the stores at Castle Towers in Sydney and Tuggerah on the Central Coast, according to BBRW. Iconic brands such as R.
Financial Struggles and Supplier Exodus
Suppliers are also withdrawing support, with some demanding upfront payments and others limiting stock access. The retailer has encountered reports of delayed payments to suppliers, as well as challenges some suppliers face in securing trade credit insurance, as reported by BBrw.
The word around the campfire is that if you have a gift card balance, use it ASAP,
said user Illustrious_Error469 SMH. The company has been under financial stress for months. According to Bloomberg, Hilco Capital has confirmed its financial support for David Jones to sustain operations through December, a critical period for department stores where two-thirds of annual profits are typically generated, as noted by BBrw.
Hilco’s Role and Legal Disputes
Hilco Global, a British special situations investor, has lined up restructuring advisers at McGrathNicol and Clifford Chance should anything go awry AFR. However, David Jones has denied claims that Hilco engaged insolvency advisers McGrathNicol Channelnews. The retailer has also rejected suggestions of insolvency, with legal correspondence stating that reports questioning its financial position have caused significant and irreparable harm
to its operations, employees, and suppliers Channelnews.
Hilco remains supportive of the business, a Hilco spokesman said NINE. The company has experienced prolonged financial difficulties, as indicated by accounts filed earlier this year revealing a pre-tax loss of $95.5 million for the year ending June, which is worse than the $74.1 million loss from the previous year, according to BBrw. The retailer has encountered reports of delayed payments to suppliers, as well as challenges some suppliers face in securing trade credit insurance, as reported by BBrw.
Anchorage’s Turnaround Strategy
Australian private equity firm Anchorage Capital Partners has been running David Jones since 2023 BBrw. During the nine months ending March, the retailer reported a 3.6% increase in sales to A$1.59 billion and mentioned a pre-tax profit of around A$15.46 million, according to BBrw. It noted a 325% rise in EBITDA, though the initial statement did not reveal the specific EBITDA amount, as per BBrw. A company executive stated, Anchorage is 100 per cent behind David Jones,
while pointing to refurbished stores and lower operating costs as evidence of progress Channelnews.
The physical store network is undergoing rationalization, with some stores closed or scheduled for closure, and ongoing industry speculation regarding additional cuts, according to BBrw. That makes the Christmas 2026 trading period particularly important BBrw. David Jones’ owners are engaged in urgent talks with landlords and suppliers to decide the store’s future post-Christmas this year, as reported by BBrw. These discussions form part of the intensive efforts by private equity owner Anchorage Capital to revitalize the upscale department store amidst growing cash-flow challenges, according to BBrw.
Market Reactions and Future Outlook
Retail historian Dr. Matthew Bailey of Macquarie University noted that David Jones faces “a slow decline” due to competition from online retailers, shrinking department store footprints, and demographic shifts. I think we’ll probably see fewer stores, smaller stores,
he said, adding that younger shoppers prefer online shopping while older customers spend less NINE. The retailer has been lashed by collapsing sales, rising losses, and an exodus of major fashion brands BBrw.
As of October 27, 2026, the outcome of Anchorage’s turnaround efforts and Hilco’s continued support will determine whether David Jones survives the holiday season—and whether its 188-year legacy endures. Three more gift articles will become available on the 1st of every month SMH. Jessica Yun is a business reporter covering retail and food for The Sydney Morning Herald and The Age SMH.