David Jones, the historic department store chain, will close 19 of its 43 stores across Australia and New Zealand after entering voluntary administration last week. The retailer, which employs around 6,000 staff, confirmed the closures on Wednesday.
Historic Retailer Enters Administration
Founded 188 years ago, David Jones is recognised as the oldest continuously operating department store in the world still trading under its original name. Its owners say the 43 stores attract about 50 million visits annually and serve five million customers, including at flagship stores in Sydney and Melbourne.
Christopher Hill, David McGrath and Joanne Dunn of FTI Consulting were appointed administrators after the company collapsed last week. The move came less than a week after the retailer filed for voluntary administration, following reports it had failed to pay rent to Westfield, the shopping centre company that hosts many of its stores.
Stores Slated for Closure
The stores set to close include Carousel, WA; Garden City, WA; Glen Waverley, VIC; Green Hills, NSW; Hay Street Mall, WA; Highpoint, VIC; Hornsby, NSW; Macarthur Square, NSW; Macquarie Centre, NSW; Malvern Central, VIC; Marion, SA; Newmarket, NZ; Parramatta, NSW; Robina Town Centre, QLD; Sunshine Plaza, QLD; Warringah Mall, NSW; West Lakes, SA; Woden, ACT; and Wollongong Central, NSW.
A spokesman said the administrators were making a “difficult” decision to go ahead with an “urgent restructure of the business, in line with management’s plan for the future of David Jones that was being worked on prior to the appointment”.
Impact on Staff and Trading
“For the immediate term these stores will continue trading and while there is no final date for the closures, we anticipate they will cease trading by the end of the year,” a statement read. “David Jones staff have been informed today, with the consultation period continuing over the next seven days.”
The spokesman described the decision to close stores and make staff redundant as “highly regrettable”, adding that the restructure would have a “material impact” on those who worked with the retailer. “Whilst the impacts are highly regrettable, the Receivers believe the steps are unavoidable if David Jones is to continue as a viable business and these measures will help give David Jones the best chance for a sustainable future,” the spokesman said. “People are at the heart of David Jones and the team puts customers first, every day.”
