David Jones Receivers Plan to Close Half of Retailer’s Store Network

Receivers for David Jones announced plans to close 19 of the retailer’s 38 stores, a move that will trigger mass job losses as the company undergoes an urgent restructure.

The closures include the company’s only New Zealand location in Newmarket and several sites across Australia, with all affected stores expected to cease trading by the end of the year.

The department store chain, which employs 6,000 people, entered voluntary administration last week following a breakdown in rent negotiations with major landlords and years of significant profit losses.

“Today, the receivers have made the difficult decision to proceed with an urgent restructure of the business, in line with management’s plan for the future,” the receivers said.

The restructuring comes as the company faces $320 million in total debt, including $100 million owed to various suppliers and trade creditors who are now fighting to recoup unpaid funds.

“We are currently owed $75,000 from David Jones, and that puts a massive strain on the business,” said Jacob Leung, owner of the supplier Slowdown Studio.

David Jones chief executive Erica Berchtold told staff in a message that the business could not continue operating in its current form and that a consultation period had begun.

Some employees reported learning of the closures through a workplace application rather than from management, leading to frustration among staff at affected locations.

“If you don’t have a unique offer, then it’s a race to the bottom with price,” said Charles Edward Lloyd Jones, a fifth-generation member of the founding family.

The retailer’s owner, Anchorage Capital Partners, is reportedly seeking a buyer for the brand, with some analysts suggesting the business must transition to a smaller, slimline footprint to survive.

It remains unclear whether a buyer will emerge to purchase the remaining 19 stores or if further closures will be necessary to ensure the company’s long-term viability.