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Australian department store David Jones is facing significant financial instability, with lenders reportedly seeking restructuring specialists. The retailer has struggled with declining sales and debt, leading to its recent sale to private equity firm Anchorage Capital.
Why it matters
The potential collapse of a historic retail institution highlights the ongoing struggle of traditional brick-and-mortar department stores against e-commerce and changing consumer habits.
David Jones on the ropes as restructuring talk rumours circulate I By Ian Verrender
Once the grande dame of Australian retail, the slow but steady decline of David Jones has been difficult to watch.
A day after rival Myer notched up a $276 million annual loss, reports are circulating through financial circles that the nation’s biggest department store is facing an uncertain future.
According to the Australian Financial Review, David Jones’s lenders are lining up restructure specialists in an effort to secure its future.
It comes just a day after the ABC reported that the department store was struggling to pay suppliers. It's understood that Accent, the owner of Platypus Shoes and Athlete's Foot, will only deliver products once paid.
In April, the company was six months late filing results, which eventually revealed a pre-tax loss of $62.3 million.
Sales also shrunk, down nine per cent to $2 billion.
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