Business & Finance

David Jones Enters Administration After 188 Years of Operation

By Today News Hours Editorial Desk

David Jones, Australia’s oldest department store chain, has entered voluntary administration, putting thousands of jobs at risk. The retailer, known locally as DJs, has struggled financially for years as customers shift to online shopping. The company’s physical and online stores will remain open while receivers FTI Consulting review the business, according to administrators McGrathNicol. CEO Erica Berthold said the brand has a “well‑developed plan” to reset the business for the future and thanked customers, staff and partners for their support. David Jones employs about 6,000 staff and operates 38 physical stores, 17 of which are in Westfield shopping centres. Hours before the board voted for administration, Scentre, owner of Westfield, said the retailer had not paid its October rent and was therefore in breach of its tenancy agreement. Christopher Hill of FTI Consulting said the current retail environment, rising costs, an outdated retail footprint and supply chain challenges led to this point. By appointing administrators and receivers, the company will receive breathing space and a chance to restructure. For many Australians, David Jones and its black‑and‑white houndstooth design represented luxury. Its collapse has been described as the “death knell” for the department store format. Jana Bowden of Macquarie University’s Business School noted that the flagship city stores in Sydney and Melbourne were once seen as the Australian equivalent of Harrods, with families traveling from afar to see the festive Christmas window displays. She said the brand has lost its shine in recent years, with suburban stores described as mundane and lacking excitement. The store’s history includes a 1954 banquet dinner attended by Queen Elizabeth II on the seventh floor of the Elizabeth Street location, according to the Sydney Morning Herald.