By Karim Hammam
Australia's oldest department store chain David Jones has gone into voluntary administration after 188 years of operation, putting about 6,000 jobs at risk. The retailer, known locally as DJs, appointed administrators McGrathNicol and receivers FTI Consulting to review the business while its physical and online stores continue to trade.
Administration Process
Chief executive Erica Berthold said the company has a well-developed plan to reset the business for the future and thanked customers, staff and partners for their support. The board's decision came hours after landlord Scentre Group, which owns Westfield shopping centres hosting 17 David Jones stores, said the retailer had not paid October rent and was in breach of its tenancy agreement.
Financial Pressures
Christopher Hill from FTI Consulting said the administration provides breathing space to restructure, citing the retail trading environment, rising costs, an outdated retail footprint and supply chain challenges. The collapse marks the end of an era for a brand once considered the Australian equivalent of Harrods.
Cultural Significance
Marketing academic Jana Bowden from Macquarie University said the department store format's "death knell" has sounded, noting that while city flagship stores retained an upmarket feel, suburban outlets had become mundane and lacked the glamour that once drew families from hours away for Christmas window displays.
