David Jones department stores will shutter approximately half of its retail locations as part of a comprehensive restructuring effort announced by appointed receivers FTI Consulting. The closures will affect 19 stores across multiple states, including seven locations in New South Wales, three each in Victoria and Western Australia, two each in Queensland and South Australia, one in the Australian Capital Territory, and the company’s sole New Zealand store in Auckland. The affected stores are expected to cease operations by year-end, though they will continue trading during an immediate consultation period with staff.
The restructuring follows years of financial decline for Australia’s oldest department store chain, which has struggled to maintain profitability amid competition from online retailers and standalone luxury brands. Chief Executive Erica Berchtold indicated that the store portfolio required reconfiguration to create a financially sustainable operation. The company entered voluntary administration in the preceding week after accumulating significant losses. Under the current arrangement, FTI Consulting manages day-to-day operations while administrators McGrathNicol work to identify potential buyers or secure additional capital investment.
Hilco Global, the company’s primary secured lender and the entity that appointed the receivers, is positioning staff representatives in closing stores to enhance sales and promotional efforts. The closures primarily target smaller format locations while preserving flagship city stores. The restructuring reflects broader challenges facing traditional department stores and changing consumer shopping patterns, with many customers shifting to online purchases.
Employees affected by the closures are receiving support from the Shop, Distributive and Allied Employees’ Association union, which is advocating for worker relocation opportunities or full redundancy entitlements. Private equity owner Anchorage Capital, which has previously pursued a downsized version of the business, is expected to submit a proposal to repurchase the 188-year-old retailer. Landlords including Scentre Group, which operates shopping malls hosting 17 of the affected stores, have indicated readiness to attract replacement tenants to their properties.
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