Overview
- On Thursday the David Jones board appointed McGrathNicol as voluntary administrators and FTI Consulting as receivers, and stores and online operations are trading under their control while options are reviewed.
- Scentre Group, owner of many Westfield centres, says David Jones has not paid rent since 30 September and that it offered a rescue package that Anchorage Capital Partners rejected; landlords hold bank guarantees that could be used to cover unpaid rent.
- The retailer has posted heavy recent losses and missed its ASIC filing deadline, suppliers and luxury brands have tightened or withdrawn terms, and lender Hilco Capital provided extra funding to boost stock for the Christmas period.
- Administrators will consider a sharp downsizing of the 38-store network — reports range from about a dozen to as many as 26 potential closures — and unions warn thousands of jobs and supplier claims are at risk.
- The collapse highlights wider pressure on traditional department stores from high lease and finance costs, changing shopping habits and online competition, which could affect landlords, suppliers and holiday trading across the retail sector.