Australian department store chain David Jones faces possible administration after rent talks with Westfield landlord Scentre Group failed, the Guardian reported, while bank guarantees give the landlord protection against unpaid rent.
In a Nov. 4 operating update, Scentre said David Jones had paid all rent due through Sept. 30. The retailer occupies about 200,000 square meters at 17 Westfield locations. Scentre put its share of gross rent from those stores at A$45 million for calendar 2026, or about 1.8% of its total gross rent.
Scentre’s share of bank guarantees provided by David Jones is about A$30 million. That is equivalent to eight months of gross rent, and the landlord said it can apply the guarantees to unpaid rent.
Scentre Group Chief Executive Officer Elliott Rusanow said David Jones was in breach over unpaid rent and that its owner, Anchorage Capital Partners, had rejected an offer intended to keep the retailer trading, according to ABC News and the Guardian. The Guardian reported that losses and weak consumer spending had put pressure on the business.
A David Jones spokesperson said the retailer was assessing its Australian stores and its arrangements with suppliers and brands, the Guardian reported. David Jones was founded in 1838, and Anchorage completed its acquisition of the company in March 2023.
The Guardian cited two people familiar with the talks who expected administrators to be appointed. ABC News reported Nov. 4 that David Jones’ board was expected to meet and could decide whether to enter voluntary administration within 24 hours of its report.
