David Jones, Australia's oldest department store, is on the brink of collapse after reporting a pre-tax loss of more than £50m, with customers reporting they were unable to redeem their gift cards over the weekend.
The retailer, which began trading in 1838, is battling serious financial struggles and could enter voluntary administration, according to multiple news outlets. Consumer experts are now advising shoppers to spend their gift cards as soon as possible.
Financial losses and emergency funding
David Jones recorded a pre-tax loss of $95.45 million (around £50.1m) for the 2025 financial year, following a $74.12 million (around £39m) pre-tax loss in the prior period. The figures emerged when the retailer filed its delayed annual accounts with the Australian Securities and Investments Commission (ASIC).
The company secured $10m in emergency funding to stock up ahead of the 2026 festive shopping season, but supplier confidence has been shaken, with brands including Gucci pulling out amid the uncertainty. The last-minute funding was arranged by UK-based restructuring specialist Hilco Global, brought in after David Jones missed payments to several key concession holders.
Gift card issues and consumer advice
Nine.com.au reported that the gift card redemption problems were due to a global outage affecting GiveX, the third-party platform that supports David Jones Gift card services. The service has since been restored, although maintenance is still ongoing in some regions.
In response to inquiries about the future of the business, a David Jones spokesperson said: “David Jones does not comment on speculation in the media.” The spokesperson added that CEO Erica Berchtold’s priority is to accelerate the execution of the business’s INSPIRE30 strategy and that she is in advanced discussions with key stakeholders about how David Jones is adapting to the retailing landscape, including a review of the portfolio of stores across Australia and trading terms with suppliers and brand partners.
Eden Radford from consumer advocacy group Canstar advised David Jones customers to check whether their gift cards remain valid and to “put them to some good use”. She told 9News that unused gift card holders risk ending up at the end of a long list of creditors if a business becomes insolvent, noting: “Frankly and in reality most of the time that often means you don’t get what you paid for.”
Store footprint and future outlook
The department store operates 38 outlets across Australia and New Zealand and is understood to employ more than 5,000 workers. The emergency funding bought time for owner Anchorage Capital Partners and CEO Erica Berchtold to negotiate with landlords to downsize the retailer’s 38-store footprint, potentially cutting it by half to stabilise operating overheads.
Industry analysts expect that if David Jones is to survive, it will need to continue shrinking its physical footprint in favour of driving digital sales. Store closures have been suggested to save the retail empire from extinction, 7News reports, while The Australian writes that the chain is looking for a financial rescuer. In January, two stores closed including a location in Sydney.
Retail expert Gary Mortimer told 9News: “I think what we will see is a smaller footprint of David Jones stores,” while reassuring shoppers that he does not believe the chain will suffer an outright “collapse.”
