David Jones has collapsed into voluntary administration and receivership for the first time in its 188-year history, putting thousands of retail jobs at risk across Australia just weeks before Christmas.
Christopher Hill and David McGrath were appointed as receivers and managers of the holding company ACP Riley Street Midco Pty Ltd, while Professor Jana Bowden from Macquarie University’s Business School described the collapse as the final death knell for the traditional department store format, comparing its historical status to Harrods of London. Dr Matthew Bailey, a retail historian at Macquarie University, noted that department stores have faced long-term structural pressures resulting in shrinking floor space and store networks rather than sudden disappearance. Zelman Ainsworth, director of Ainsworth Property, observed that the retailer’s underlying challenges had been compounding over multiple years without adequate operational adjustments.
The board of the heritage department store voted to appoint voluntary administrators from McGrathNicol after negotiations with its primary landlords broke down irreconcilably. Lenders promptly installed FTI Consulting as receivers to run day-to-day operations across the 38-store network. The retailer employs about 6,000 staff, with 17 stores located inside Westfield shopping centres operated by Scentre Group.
Landlords Force Receivership After Unpaid Rent Breaches Agreements
The collapse followed a breakdown in lease talks between David Jones and major commercial landlords. Scentre Group chief executive Elliott Rusanow stated that David Jones had failed to pay rent since October and was therefore in breach
of its tenancy agreements. Scentre made an offer to the department store’s private equity owners, Anchorage Capital Partners, that was rejected, after which David Jones’ board rejected a counter-proposal from Scentre.
Scentre holds approximately $30 million in bank guarantees, equivalent to about eight months of gross rent, which were required when Anchorage acquired the business from South Africa’s Woolworths Group in 2023 for less than $100 million. Woolworths had paid $2.1 billion for the department store chain in 2014. Financial accounts showed that David Jones posted a $95.5 million loss.
Gift Cardholders and Suppliers Face Losses as Creditors
Consumers holding unredeemed gift cards and suppliers awaiting unpaid invoices are classified as unsecured creditors in the administration process. Erin Turner warned shoppers to spend existing gift vouchers immediately. You can lose the money,
Ms Turner said, noting that voucher holders sit at the back of the queue for recovering funds and risk losing their money.
Christopher Hill, a receiver from FTI Consulting, was appointed to oversee the process. Professor Jana Bowden from Macquarie University’s Business School described the collapse as the final death knell for the traditional department store format, comparing its historical status to Harrods of London. Ainsworth observed that the retailer’s underlying challenges had been compounding for years without notable changes to adjust the business.
Other property entities also felt the impact of the retail collapse. Starhill Global REIT, which owns the building in Perth where David Jones occupies 95.1% of the lettable area, disclosed S$1.3 million in rental arrears. The trust warned investors that if the lease concluded without a replacement tenant for 12 months, its distribution per unit would drop by approximately 10.6% while overall portfolio occupancy would decline from 97.4% to 86.1%. Mal Chia, managing director and co-founder of Ecom Nation, advised suppliers holding inventory not to dispatch goods to the retailer, noting that apparel brands such as Seed Heritage—owned by Peter Lew via Brandbank Group—began diverting holiday inventory directly to standalone stores.
Administrators Provide Breathing Space to Restructure Retail Footprint
Voluntary administrators and receivers indicated that the administration will provide breathing space to restructure the business. Christopher Hill of FTI Consulting said that rising costs, an outdated retail footprint, and supply chain challenges contributed to the collapse. Erica Berchtold, CEO of David Jones, stated that the company maintains a well-developed plan
to reset the business for the future.
Gerard Dwyer, national secretary of the Shop, Distributive and Allied Employees’ Association, said the primary objective for the union was protecting worker entitlements and retaining as many jobs as possible through a smaller, restructured operating model. Creditors are scheduled to meet the following week.