David Jones to Close 19 Stores
The iconic Australian department store chain will shut half of its 38 stores by the end of the year, resulting in mass job losses for its 6,000 staff
David Jones, the 188-year-old Australian department store chain, is set to close 19 of its 38 stores, resulting in mass job losses for its more than 6,000 staff. The closures, which are expected to occur by the end of the year, are part of an urgent restructure under the management of receivers FTI Consulting and administrators McGrathNicol.
The 19 stores identified for closure are located across Australia and New Zealand, including 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.
Receivers FTI Consulting have day-to-day control of operations, while administrators McGrathNicol seek a buyer or fresh injection of capital. David Jones's private equity owner, Anchorage Capital, is expected to make a proposal to administrators to re-purchase the chain.
The collapse of David Jones into voluntary administration last week has also left some small suppliers owed money dating back to stock sent in April. The upheaval follows years of steep losses after the retailer failed to carve out a profitable niche in a sector disrupted by online competitors and stand-alone upmarket stores.
## Why it matters The closure of 19 David Jones stores will have a significant impact on the retail industry and the communities where the stores are located. The mass job losses will affect not only the staff employed by David Jones but also the small suppliers who are owed money by the company. The restructure of David Jones is a result of the company's failure to adapt to the changing retail landscape, and it remains to be seen whether the company can be salvaged or if it will be sold to a new owner.
## What happens next The administrators of David Jones will continue to seek a buyer or fresh injection of capital, while the receivers will proceed with the closure of the 19 stores. The company's private equity owner, Anchorage Capital, is expected to make a proposal to re-purchase the chain, which could potentially save some of the jobs and stores. However, the outcome is uncertain, and the future of David Jones remains unclear.
