David Jones enters administration, putting thousands of jobs at risk

David Jones has entered voluntary administration for the first time, putting thousands of jobs at risk. The Australian department store retailer employs more than 6,000 people across 38 stores.

The November 5 appointments followed years of steep losses and underperforming stores, missed rent payments and a breakdown in talks with the retailer’s principal landlord, Scentre Group, which owns Westfield. Scentre said David Jones had not paid rent since September.

Receivers take control

The board appointed voluntary administrators from McGrathNicol, after which the main financier appointed FTI Consulting as receivers. FTI will take day-to-day control and run the stores while restructuring the business. Owner Anchorage Capital Partners has lost operational control.

The Guardian anticipates immediate store closures. Receivers will try to keep the core network open while seeking fresh capital.

Unpaid suppliers and customers with unredeemed gift vouchers could face substantial losses. Some suppliers have already begun redirecting stock to their own stores.