By Fatma Younis
David Jones, the 188-year-old Australian department store chain, is poised to enter administration after eleventh-hour talks between its private equity owner Anchorage Capital Partners and primary landlord Scentre Group broke down.
Landlord talks collapse
Scentre Group, owner of the Westfield shopping centre portfolio, confirmed on Wednesday that discussions had ended without agreement. Chief executive Elliott Rusanow said David Jones had not paid rent since September and was in breach of its lease. “We have made a generous offer to Anchorage Capital Partners that would have facilitated the continuation of David Jones trading and that offer has disappointingly been rejected by them,” Rusanow said in a statement.
Administration process
People familiar with the discussions said the next step is the appointment of administrators. While an administration could help the retailer overhaul its business, it also places the chain’s fate in the hands of creditors. Administrators are expected to keep stores trading with minimal disruption through the Black Friday and Christmas periods to capture vital seasonal revenue.
Store reduction plans
David Jones chief executive Erica Berchtold had been in advanced talks with key stakeholders, including a review of the retailer’s 38-store portfolio and trading terms with suppliers and brand partners. The company had sought to renegotiate leases and offload underperforming suburban sites, with a longer-term goal of reducing its network to about one-third of its current size.
Sector challenges
The collapse reflects broader pressures on mid-to-upmarket department stores. Shares in rival Myer Holdings have fallen more than 50% in 2026. RMIT University advertising expert Professor Robert Crawford said David Jones had been caught in an intensifying squeeze between discount chains and luxury fashion houses selling directly to consumers, adding that the David Jones model had struggled to adapt to modern retailing.
