David Jones collapses into administration after 188 years
Talks with landlord Scentre Group broke down, putting thousands of jobs and the department store chain's future at risk.
Key facts
Story- David Jones, Australia's upmarket department store, has gone into voluntary administration.
- The collapse follows talks with its primary landlord, Westfield owner Scentre Group, which broke down.
- The 38 physical stores and online sites will keep operating while administrators review operations.
In this story
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David Jones
Mentioned in this story
David Jones, Australia's upmarket department store chain, has collapsed into voluntary administration. The 188-year-old retailer's future is now in doubt, and thousands of jobs are at risk.
The move came after last-minute talks between David Jones and its primary landlord, Westfield owner Scentre Group, broke down. Administrators were appointed on Thursday morning.
The chain has been losing money for years. It has also struggled with weak consumer spending and a number of underperforming stores. It fell behind on its rent as a result. Store closures are expected. Officials have not said how many stores will close.
What happens to the stores
The chain's 38 physical stores and its web-based storefronts will keep trading while administrators examine how the business runs. Administrators will decide which stores, if any, will close. Staff have not been told how many roles are affected.
The chain's problems have been building for years. Its private equity owner has been unable to turn the business around, and the retailer has been defaulting on its rent. The talks with Scentre Group were the last attempt to reach a deal that would keep the business running.
What happens next depends on the administrators. They will assess whether the business can be sold or restructured. It is not yet known whether a buyer has been found or whether any stores will be saved.
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