David Jones goes into administration, with store closures expected and thousands of jobs at risk
Summary
Australian department store David Jones has entered voluntary administration after years of losses and a breakdown in rent negotiations with its main landlord, Scentre Group. Receivers from FTI Consulting will run the business as it restructures, with store closures expected and more than 6,000 jobs at risk.Key Facts
- David Jones is an 188-year-old Australian department store chain.
- The retailer’s board appointed administrators from McGrathNicol.
- Its main financier appointed FTI Consulting as receivers to take day-to-day control.
- The company has reported years of steep losses and underperforming stores.
- Negotiations with landlord Scentre Group broke down after David Jones fell behind on rent.
- Receivers will seek fresh capital and aim to keep the core store network open during restructuring.
- David Jones employs more than 6,000 people across 38 stores.
- Store closures are expected, and thousands of jobs are at risk.
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