Iconic department store David Jones collapsed into voluntary administration and receivership last week, leaving suppliers unpaid and real estate operators facing substantial rental shortfalls.
David Jones administrators at McGrathNicol revealed they reviewed the department store’s finances as early as April 2026 after being engaged by lawyers for owners Anchorage Capital, according to The Guardian, according to Theguardian.
The retailer continued placing small suppliers on tiered and extended payment terms. It fell months behind on invoices and forced brands to accept ever-deeper discounts for faster payments.
Simon Woodhouse requested help planning for potential voluntary administration on October 22.
Private equity firm Anchorage Capital Partners bought David Jones for around $100 million in 2023 from South African conglomerate Woolworths Holdings, which had acquired it for $2.1 billion in 2014, Forbes Australia reported.
The retailer suffered a $95.5 million pre-tax loss for the year to June 29, 2025. This rose from a $74.1 million loss the previous year.
Harvey Norman Chairman Gerry Harvey described the collapse of the 188-year-old department store as like someone close to you dying.
Harvey blamed a loss of retail expertise under owner Anchorage. He stated that Anchorage had spent recent years stripping costs out of the business to return it to profit, reducing the chain closer to a discount model than a full-service department store.
Meanwhile, a former chief executive of David Jones is suing the retailer in the Supreme Court of Victoria. They allege oppressive, prejudicial or discriminatory conduct and seek a buyout of shares.
Receivers Christopher Hill, David McGrath, and Joanne Dunn of FTI Consulting noted that sales were at record levels
across in-store and online locations, according to Yahoo Finance Australia.
Whilst there were limited instances of brand partners withdrawing from some stores, the receivers have overall had very positive engagement with David Jones’ trade partners and are working with these stakeholders to ensure customers continue to have access to leading brands,
FTI Consulting, Receivers
Prospective buyers were given until Friday afternoon to express formal interest as administrators McGrathNicol kicked off a sale process for the iconic retailer, according to Forbes Australia.
Receivers noted there are no updates to communicate about David Jones’ retail footprint at this time. Speculation continues over whether some of its 38 stores, including one in Auckland, could close and threaten the jobs of many of its 6,000 employees.
Gift card holders can still redeem existing gift cards, though the retailer stopped selling new gift cards following its move into administration. The returns policy for change of mind was also tightened from 30 days to a 14-day exchange period for purchases made after November 7.
The collapse leaves unsecured creditors, including suppliers owed an estimated $100 million, facing substantial losses, according to SmartCompany.
Juliet, accessory brand Beysis, and fashion labels Betty Basics and Frankie & Co reported holding large amounts of unpaid stock or facing anxious waits over debts.
Westfield operator Scentre Group faces significant rental shortfalls.
David Jones occupies about 200,000 square metres across its 38 stores. This makes up roughly 5 per cent of Scentre’s total floor space.
Scentre shares sunk 4.4 per cent to $3.45 in response to worries on Monday and have tumbled 18.4 per cent in 2026. Morgan Stanley cut its share price target on Scentre shares by 10 per cent from $4.40 to $4.00.
Whether the 38 stores will remain open and who will ultimately buy David Jones from administration is not yet known.
Earlier coverage: David Jones Enters Administration After Missing $5 Million Rent Payment