In a devastating blow to the Australian retail landscape, the receivers of David Jones have announced the closure of nearly half of the iconic department store’s locations. The decision comes less than a week after the 188-year-old retailer, the world’s oldest continuously operating department store under its original name, collapsed into voluntary administration.
FTI Consulting, appointed to oversee the restructuring, confirmed on Wednesday that 19 stores across Australia and New Zealand are slated for closure. The move is a desperate attempt to salvage the business, with receivers describing the decision as “difficult” but “unavoidable” to ensure a sustainable future for the remaining chain.
“Whilst the impacts are highly regrettable, the receivers believe the steps are unavoidable if David Jones is to continue as a viable business,” FTI Consulting said in a statement.
The list of affected stores is extensive, spanning multiple states and territories. In New South Wales, the list includes major sites such as Parramatta, Macquarie Centre, and Wollongong Central. Victorian locations including Highpoint and Malvern Central are also set to close, alongside key stores in Western Australia, South Australia, Queensland, and the Newmarket store in New Zealand.
For the approximately 6,000 staff members employed by the retail giant, the news marks a period of profound uncertainty. FTI Consulting has commenced an immediate seven-day consultation process for employees at the affected locations. The company has asked for public respect for the staff, emphasizing that “people are at the heart of David Jones.”
The collapse follows weeks of intense, high-stakes negotiations with landlords, including retail property giant Scentre Group. Management had initially hoped to keep 12 stores running as normal while seeking lease relief for others, but those efforts failed to avert a wider contraction. The retailer currently faces a significant financial burden, with total debts reaching $320 million, including $100 million owed to suppliers and trade creditors.
Despite the volatility, the receivers confirmed that existing gift cards and store credits remain valid at all remaining operational stores. Consumer advocates, however, are urging customers to redeem any outstanding balances as soon as possible. Similarly, the retailer has assured customers that pre-paid orders and laybys will continue to be fulfilled through its existing warehousing network.
As the retail giant prepares for the crucial Black Friday and Christmas trading periods, it faces the grim reality of a shrinking footprint. The 19 targeted stores are expected to cease trading by the end of the year, marking the end of an era for thousands of loyal shoppers and employees. For now, the remaining stores will continue to trade while the company attempts to chart a path out of its current insolvency crisis.
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