Receivers at FTI Consulting have identified 19 of David Jones’ 38 stores for closure, opening staff consultations as the Australian department store chain undergoes administration.
The Guardian reported Wednesday that FTI announced an urgent restructure and took day-to-day control of the retailer’s operations. It described the plan as bringing mass job losses, but the FTI statement quoted in the report confirmed consultations at the 19 locations and gave no estimate of job cuts.
FTI expects the affected stores to stop trading by year-end, the newspaper reported. No final closure date has been announced. The retailer entered voluntary administration last week, and EconoTimes previously covered its entry into administration and search for buyers or new capital.
Executives from McGrathNicol were appointed administrators, while FTI staff took receiver roles, The Straits Times reported. Administrators are seeking a buyer or new capital, and David Jones continues to trade in stores and online during the process, according to the paper.
The Guardian put David Jones’ workforce at more than 6,000 across its 38 stores, but did not say how many jobs could be affected. It also reported that some small suppliers are owed money for stock sent in April.
The newspaper linked the company’s difficulties to years of losses and its struggle to find a profitable position amid online competitors and stand-alone upscale stores. David Jones Chief Executive Erica Berchtold said the current store portfolio no longer suits the business, according to the report.
Anchorage Capital Partners acquired David Jones in 2023. The Guardian reported that Anchorage has long sought a smaller version of the retailer. Hilco Global, the secured lender, appointed FTI to protect its financial interests, the newspaper reported. The Guardian reported that Anchorage is expected to propose buying the chain from administrators; the proposal has not been confirmed, and the newspaper gave no timetable.
