Business & Finance

David Jones Continues Trading Amid Administration, Updates Return Policies

By Jo Abi

David Jones has confirmed it will keep operating normally while under voluntary administration, and it has revised its refund and exchange rules. The receivers, FTI Consulting, reported record in‑store and online sales since the company entered administration on November 7 and said the chain will remain fully operational across Australia and New Zealand.

Customers who bought items before November 7 can return them within 30 days, plus an extra five days for online orders. Returns are not accepted on gift cards, food, furniture or bedding. The changes are posted on the company’s website. Gift cards and existing store credits can still be used at all open department‑store locations, subject to the usual trading terms. Existing paid orders and lay‑by items are being processed through the retailer’s normal logistics and warehouse network.

Gift cards are no longer being sold, and consumer advocates are urging holders of unused cards to redeem them promptly.

The 188‑year‑old department‑store chain entered voluntary administration after failed negotiations with its major landlord, Westfield. The board handed control to McGrathNicol administrators, who announced that stores are expected to close before Christmas, putting thousands of jobs at risk. Christopher Hill, David McGrath and Joanne Dunn of FTI Consulting have been appointed receivers and will run the business until it is restructured and sold.

The receivers said that, because of strong recent trading, they are ordering replenishment stock from suppliers who have confirmed trading agreements, with Hilco’s support. They acknowledged that some brand partners have withdrawn from certain stores but are working with stakeholders to keep leading brands available to customers.

No decision has yet been made about the future of the business, which remains under review in the context of the plan that existed before the receivership. The receivers will communicate any final decisions first to employees and other stakeholders.

David Jones has been owned by Anchorage Capital Partners since 2023. Many of its Westfield locations, 17 of 38 outlets, are expected to close. A group interested in purchasing the business has been reported, as has possible interest from rival Myer in acquiring some locations.

Chief executive Erica Berchtold said that physical and online stores would continue to trade under the receivers’ control while operations were reviewed. She thanked customers, team members and partners for their support and said the company has a plan to reset the business for the future.

Hill said voluntary administration provides a “breathing space” to restructure the business amid rising costs, an outdated retail footprint and supply‑chain challenges, and that the process will be managed carefully with awareness of its impact on stakeholders.