The key facts
- David Jones has entered voluntary administration; 38 physical stores and online sales continue to operate
- The company employs around 6,000 people, with 17 stores located in Westfield shopping centres
- Scentre reported unpaid October rent just hours before the board's decision
The country's oldest department store — under external administration
David Jones, Australia's oldest department store chain, which has been operating for 188 years, has entered voluntary administration, putting thousands of jobs at risk. BBC News reported the news. The decision came after years of financial difficulties for the company, known in the country as DJs, as shoppers move away from traditional stores to online retail.
What is happening with the stores and staff
David Jones's physical and online stores will continue to operate while receivers from FTI Consulting examine the company's position; McGrathNicol is acting as administrator. The company employs around 6,000 people and operates 38 physical stores, 17 of which are located in Westfield shopping centres. CEO Bertrand... no — CEO Erica Berthold called David Jones an 'iconic company' and said the brand has a 'well-developed plan' to 'relaunch the business for the future', thanking customers, staff and partners for their support. Christopher Hill of FTI Consulting attributed the situation to the current retail environment, rising costs, a 'significant and outdated' retail portfolio and supply chain problems; in his words, the appointment of administrators and receivers will give the company 'breathing room' and a chance to restructure.
Unpaid rent on the eve of the decision
Just hours before the board voted to enter administration, Scentre — the owner of the Westfield centres — said the retailer had failed to pay rent for October and was 'therefore in breach' of its lease. Thus, the formal move by the landlord and the company's own decision came almost within a single day of each other, although the BBC does not report any direct causal link between the two events.
A symbol of luxury that lost its shine
For many Australians, David Jones, with its signature black-and-white houndstooth pattern, embodied luxury. Yana Bowden, a marketing lecturer at Macquarie University Business School, called the company's collapse a 'death knell' for the department store format and compared it to Australia's answer to Harrods. According to her, a visit to the flagship store in central Sydney was a ritual for many families — especially for the festive Christmas window displays — but in recent years the brand has lost its shine: city stores have kept their premium image, while suburban ones are 'bland and lacking excitement'.
Image source, Getty Australia's oldest department store, David Jones, has gone into voluntary administration
