Overview
- Company directors appointed McGrathNicol as voluntary administrators and a major creditor appointed FTI Consulting as receivers to stock, with both firms taking control of different parts of the process after the collapse was announced on Thursday.
- Talks with Scentre Group, the Westfield owner, broke down after David Jones failed to pay rent that sources say has been unpaid since September, leaving landlords among the retailer's largest creditors.
- Suppliers report months of unpaid invoices and unanswered calls, and dozens of concession brands have been removing their stock from stores to protect assets they still own.
- Administrators and receivers are exploring options that include a sale, a recapitalisation or a steep reduction in store numbers that some reports say could leave as few as about a dozen locations and put thousands of jobs at risk.
- David Jones' troubles reflect long‑running pressures from online competition and prior sale‑and‑leaseback deals that left more than $1 billion in lease liabilities and reduced the retailer's ability to absorb rising costs ahead of the Christmas period.