David Jones enters voluntary administration in Australia — Daily Maverick

Australian department store chain David Jones has entered voluntary administration amid rising costs, sluggish retail sales and pressure in supply chains. According to Daily Maverick, the company’s stores in Australia and New Zealand will continue operating under the supervision of appointed external administrators from FTI Consulting.

Sale or recapitalisation

McGrathNicol has been appointed as David Jones’ voluntary administrator. FTI Consulting and McGrathNicol said they would immediately begin seeking proposals for recapitalising the business or selling it as a going concern.

David Jones CEO Erica Berchtold said the retailer has developed a plan to renew the business for the future. According to her, the company will work with the administrators, external administrators and the secured creditor as part of the voluntary administration process.

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History of the chain

David Jones was founded in Sydney in 1838 by Welsh immigrant David Jones. The retailer describes itself as the world’s oldest continuously operating department store. The chain has around 6,000 employees across 38 stores in Australia and New Zealand.

The company has faced pressure for more than a decade due to the growth of online commerce and competition from fast-fashion chains. Its latest owner is private equity fund Anchorage Capital Partners, which acquired David Jones from South African retailer Woolworths in 2022 for about A$100 million, according to media reports at the time.

According to ABC News, Scentre Group, which manages Westfield shopping centres in Australia and New Zealand, offered support to David Jones, but Anchorage Capital Partners rejected it. David Jones department stores operate in 17 Westfield locations.