David Jones on brink of collapse and behind on rent to Westfield stores
Australian retailer David Jones is facing potential collapse after failing to pay rent on its Westfield store locations since September. The shopping center owner, Scentre Group, has rejected a proposal from the retailer's private equity owners, putting the future of the 188-year-old chain in jeopardy.
Why it matters
The potential insolvency of a major department store chain signals ongoing struggles for traditional brick-and-mortar retail in the face of economic pressures.
David Jones has not paid rent since September for its Westfield stores. ( ABC News: Fletch Yeung )
Link copied Share Share article Major Australian retailer David Jones's days could be numbered, as shopping centre Westfield confirms the department store chain has not paid rent since September and is in breach of its contracts.
A decision on the future of David Jones could be made within the next 24 hours.
The ABC understands the three-person board of the 188-year-old retailer will need to meet imminently to decide whether to put David Jones into administration.
Scentre Group, the owner of Westfield, issued a stock market update, revealing its financial exposure to the embattled department store.
David Jones has a network of 43 stores in Australia and New Zealand. ( AAP: Dan Himbrechts )
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