David Jones will close 19 stores across Australia and New Zealand by the end of this year as part of an urgent restructure following the retailer’s collapse into voluntary administration.
The move, announced by receivers FTI Consulting on Wednesday, November 11, represents the closure of half of the 188-year-old department store chain’s physical footprint.
While the receivers have initiated an immediate consultation process for all staff associated with these 19 locations, they have not yet disclosed the final number of job losses from the company’s current roster of approximately 6,000 employees.
Restructuring the retail footprint
FTI Consulting said that the restructure was necessary to provide the business its best chance for a sustainable future. Other closures include Woden in the ACT, the Newmarket location in New Zealand, and stores in Western Australia and Queensland.
“The business could not continue operating as it was. We had a plan to reset the business and we still have a plan to reset the business,” David Jones chief executive Erica Berchtold said.
Family perspective on the company's golden era and crisis
The collapse arrives after years of financial pressure and shifts in consumer behavior. Charles Edward Lloyd Jones, a fifth-generation member of the founding family and the last to work in the business, said that the company’s golden era lasted from the post-war period until the late 1990s.
Lloyd Jones, who served as a store manager at David Jones Chatswood, Bankstown, and Bondi Junction before leaving in 1993, suggested that the current crisis stems from a failure to maintain a unique offering.
If you don’t have a unique offer, then it’s a race to the bottom with price, Lloyd Jones told AAP. He expressed concern that the company had lost its way by cutting staff, which led to diminished service.
The staff need leadership, he added, noting that managers in the 1970s and 1980s were trained to understand the entire business, whereas he had found himself searching for assistance in stores too many times in recent years.
Financial trajectory and ownership
The retailer’s ownership history has been marked by big changes. In 2014, South African retail group Woolworths Holdings acquired David Jones for $2.1 billion. By 2022, the group acknowledged the investment had not performed as planned, subsequently selling the business to Anchorage Capital Partners in 2023 for just under $100 million. The retailer’s financial health continued to deteriorate, posting a $95.5 million loss in 2024/25, following a $74 million loss in 2023/24.
Market and community impact
The administration has created ripples across the commercial property sector. Charter Hall Long WALE REIT, which holds a part interest in the David Jones flagship store on Elizabeth Street in Sydney, confirmed that its earnings guidance remains on track. The trust said that the Sydney site is covered by a bank guarantee worth approximately one year of rent, providing a buffer against the immediate disruption.
For shopping center owners, the closures create big problems. Across the Scentre Group portfolio alone, David Jones occupies approximately 200,000 square metres in 17 centres. In Canberra, the closure of the Woden store will leave a 12,000-square-metre vacancy across two levels. With many vacant retail tenancies already sitting empty for years in major CBDs, finding new tenants for such large footprints remains a complex task.
Stores continue trading while administrators seek buyers
- Consumer protection: Receivers have confirmed that stores will continue trading under updated procedures. Customers remain protected under Australian Consumer Law, and the retailer is currently honoring 14-day exchanges for change-of-mind purchases.
- Sale process: Expressions of interest to purchase or recapitalize the business must be filed by the close of business on Friday.
- Strategic shift: Administrators are currently reviewing the chain’s finances and seeking buyers with experience in operating successful department stores. Industry observers suggest that a future David Jones 2.0 might focus on a smaller, more sustainable footprint of 12 to 15 stores, moving away from the mass-market model toward a more service-oriented experience.
Earlier coverage: David Jones enters administration as prospective buyers emerge
