David Jones Enters Administration, Thousands of Jobs at Risk

By Karim Hammam

Australia's premier upmarket department store David Jones has collapsed into voluntary administration, putting thousands of jobs at risk and leaving the future of the 188-year-old retailer hanging in the balance.

Administrators and Receivers Appointed

The board appointed voluntary administrators from McGrathNicol on Thursday, before the retailer's main financier installed FTI Consulting as receivers. Under the dual appointment, FTI will take day-to-day control of operations while restructuring the business.

Store Closures Expected

The process will almost certainly trigger immediate store closures, though receivers will try to keep the core network open while hunting for fresh capital.

Background

The upheaval follows years of steep losses and underperforming stores that left the heritage retailer falling behind on rent, culminating in a breakdown of negotiations with its primary landlord, Westfield owner Scentre Group. David Jones employs more than 6,000 staff across a network of 38 stores.