Australia’s iconic department store David Jones has entered voluntary administration after 188 years in business, placing thousands of jobs at risk and raising questions about the future of its stores, suppliers and customers.
Pauline Hanson, leader of One Nation, criticised the Federal Government following the announcement.
“David Jones, a beloved Australian icon and the world’s oldest department store, has entered administration after 188 years, putting 6,000 jobs at risk,” she said.
“Another Australian business buckling. More workers paying the price for Jim Chalmers’ budget and the Albanese Labor government’s economic mismanagement.”
As per AFR, the retailer’s board appointed insolvency firm McGrathNicol as voluntary administrators on Thursday morning, following the breakdown of negotiations with major landlords over unpaid rent and the future of its store network.
Separately, secured lender Hilco Capital appointed Christopher Hill, David McGrath and Joanne Dunn of FTI Consulting as joint and several receivers and managers.
The appointments follow months of financial pressure, mounting losses and unsuccessful efforts by the retailer to secure more favourable lease arrangements and exit underperforming stores.
David Jones chief executive Erica Berchtold and representatives of its private equity owner, Anchorage Capital Partners, are expected to address staff at the company’s Melbourne headquarters.
The retailer employs more than 6,000 people across Australia and New Zealand, with its 38-store network now facing an uncertain future. Reports suggest up to 26 stores could be affected as administrators and receivers assess options for restructuring the business.
Landlord negotiations collapse
The immediate crisis followed failed discussions with Scentre Group, the owner of Westfield shopping centres, where 17 David Jones stores operate.
Scentre said David Jones had not paid rent since 30 September and was in breach of its tenancy agreements.
The landlord confirmed it held $45 million in bank guarantees across its Australian and New Zealand portfolio, with its direct share amounting to $30 million.
Scentre chief executive Elliott Rusanow told news.com.au the company had offered Anchorage Capital Partners assistance that would have allowed David Jones to continue trading through the busy Christmas period, retain staff and address some of its loss-making tenancies.
However, he said the offer had been rejected.
David Jones had been seeking rent reductions and concessions from several landlords as it attempted to reduce occupancy costs and restructure its national store network.
The retailer spent $125 million on lease and rent costs in the 2025 financial year, alongside $153 million in finance costs.
Its financial difficulties have also affected suppliers, with several brands reportedly tightening credit terms, delaying stock deliveries or withdrawing products amid concerns about outstanding payments.
Store closures and jobs in focus
The administration process is expected to bring significant changes to the retailer’s operations, with store closures and job losses among the key concerns.
David Jones had reportedly been considering reducing its network from 38 stores to about 12, focusing on a smaller number of flagship and profitable locations.
Several stores in Westfield shopping centres had been under review, including locations in Melbourne, Sydney, Perth and Canberra.
The retailer has also experienced the departure or planned withdrawal of several major fashion and luxury brands.
Country Road Group, which operates Country Road, Witchery, Mimco, Politix and Trenery, has announced plans to reduce its concession presence across selected David Jones stores from early 2027.
Luxury labels including Dior and Gucci have also withdrawn some of their products, while Chanel has reduced its offering.
The Shop, Distributive and Allied Employees’ Association (SDA), which represents retail workers, said its immediate priority was to protect as many jobs as possible and ensure workers received their full legal and financial entitlements if redundancies occurred.
SDA national secretary Gerard Dwyer told ABC the union was pursuing two key objectives: preserving employment wherever possible and protecting workers’ entitlements if positions were lost.
He also welcomed the Federal Government’s payday super reforms, saying they would help protect workers from losing up to three months of unpaid superannuation if a company collapsed.
Years of financial pressure
As per reports, David Jones has faced sustained financial challenges under Anchorage Capital Partners, which acquired the department store from South Africa’s Woolworths Holdings in 2023.
The retailer recorded a pre-tax loss of $95.5 million in the 2025 financial year, following a $74.1 million loss in the previous year. Sales also fell by almost nine per cent.
It also missed the 30 October deadline to lodge its 2026 financial accounts with the Australian Securities and Investments Commission (ASIC), with auditor PwC yet to sign off on the accounts.
ASIC had confirmed that David Jones remained under investigation in relation to its 2025 accounts.
The retailer had previously said its INSPIRE30 strategy was aimed at repositioning the business as an upmarket fashion destination, reviewing its store portfolio and adjusting trading arrangements with suppliers and brand partners.
However, the departure of major brands, mounting rental costs and competition from online retailers have added to the pressure on the historic department store.
The administration marks a major turning point for one of Australia’s best-known department store brands, founded in Sydney in 1838.
Support our Journalism
No-nonsense journalism. No paywalls. Whether you’re in Australia, the UK, Canada, the USA, or India, you can support The Australia Today by taking a paid subscription via Patreon or donating via PayPal — and help keep honest, fearless journalism alive.
