Australia’s David Jones enters voluntary administration, putting 6,000 jobs at risk

Australian department store chain David Jones has entered voluntary administration, putting about 6,000 jobs at risk and leaving the future of its 38 stores under review.

The company’s stores and online business will continue operating while administrators McGrathNicol and receivers FTI Consulting assess the retailer. FTI’s Christopher Hill said the process would give the business “breathing space” and an opportunity to restructure.

The move follows years of financial difficulty. Westfield owner Scentre said David Jones had not paid its October rent and was in breach of its tenancy agreement. FTI cited challenging retail conditions, rising costs, an outdated store footprint and supply-chain problems.

Chief executive Erica Berthold said the company had a “well-developed plan” to reset the business. David Jones employs about 6,000 people and has 38 physical stores, 17 of them in Westfield shopping centres.

Founded 188 years ago, the retailer is known for its luxury image and black-and-white houndstooth branding. Marketing academic Jana Bowden said the administration could mark a turning point for department stores, arguing that the chain had lost some of its former appeal, particularly in suburban locations.