David Jones has entered voluntary administration for the first time in its 188-year history, according to reports in Australia on Thursday morning, leaving thousands of jobs uncertain weeks before Christmas.
Staff were told on the morning of 5 November that the department store’s board had voted to appoint McGrathNicol as voluntary administrators, The Sydney Morning Herald reported. The retailer’s lender, Hilco Capital, then appointed Christopher Hill of FTI Consulting as receiver, according to The Australian Financial Review. The receivers are expected to run the business while it is restructured and offered for sale, with an update on store closures and job losses expected later this week.
The upmarket chain operates 38 stores across Australia and New Zealand and employs more than 6,000 people. Simon Woodhouse, managing partner of owner Anchorage Capital Partners, and David Jones chief executive Erica Berchtold fronted staff meetings in Melbourne to deliver the news, the reports said.
Why the talks collapsed
The collapse followed failed negotiations with Scentre Group, the operator of Westfield shopping centres and David Jones’ largest landlord, over store closures and rent. According to the Financial Review, David Jones had sought three months of rent relief and a smaller store footprint, and had hoped to emerge from a restructure with about 12 key stores.
Scentre told the Financial Review that David Jones had not paid rent since 30 September 2026. Scentre chief executive Elliott Rusanow said the landlord had made a “generous offer” that would have helped the retailer through the Christmas trading period, but it was rejected.
Scentre, which hosts David Jones in 17 of its shopping centres, disclosed it had received $45 million in gross rent from David Jones in 2026, all paid up to 30 September. The landlord said David Jones was in breach over the unpaid rent. David Jones’ landlords hold $45 million in bank guarantees across its stores, with Scentre’s share about $30 million.
A long decline
David Jones posted a $95.5 million loss in 2024/25, up from $74 million in 2023/24, according to AAP. The retailer had also missed an end-of-October deadline to file its 2025/26 financial accounts, Australia’s corporate regulator told AAP.
The chain was bought by Anchorage Capital Partners from South Africa’s Woolworths Holdings in 2023. Analysts have pointed to years of weak consumer spending, underperforming stores and intensifying competition from online-only retailers as department stores lose relevance.
What happens next for staff and shoppers
The union representing David Jones workers, the Shop, Distributive and Allied Employees’ Association (SDA), said it was already in contact with staff as reports of store closures mounted. The 2024 David Jones Enterprise Agreement covers 4,644 employees, not counting executives and warehouse staff, the union said. Its priorities are keeping as many staff employed as possible and protecting all legal and financial entitlements if redundancies occur.
For shoppers, administration does not automatically mean stores close immediately: receivers typically keep trading while a restructure or sale is explored. But with Christmas trading weeks away, the timing puts gift-card holders, suppliers and staff in an uncertain position until the administrators set out their plan.
What is not yet known: how many stores, if any, will close; how many jobs will go; and whether a buyer will emerge for all or part of the chain. Those answers are expected when the administrators and receivers give their first updates later this week.
Why it matters
David Jones is one of Australia’s oldest retail names, and its collapse would be the most prominent Australian department-store failure in years. It also tests whether a slimmed-down, flagship-focused chain can survive — the same question facing department stores in the United States and Europe, where rivals have already closed dozens of stores.
FAQ
Has David Jones closed its stores?
No closure announcement has been reported. Reports say the receivers will run the business while it is restructured and offered for sale.
Who are the administrators?
McGrathNicol as voluntary administrators, with Christopher Hill of FTI Consulting appointed receiver by lender Hilco Capital, according to the Sydney Morning Herald and the Financial Review.
Why did the talks with Scentre fail?
David Jones had not paid rent since 30 September and sought rent relief and a smaller footprint; Scentre said its offer to keep the retailer trading through Christmas was rejected.
Sources
- Human Resources Director, “David Jones enters administration, leaving thousands of jobs in limbo”, 5 Nov 2026: https://www.hcamag.com/au/specialisation/recruitment/david-jones-enters-administration-leaving-thousands-of-jobs-in-limbo/596221
- AAP, “Behind on rent, David Jones teeters on edge of collapse”, 4 Nov 2026: https://aapnews.aap.com.au/news/behind-on-rent-david-jones-teeters-on-edge-of-collapse
- Inside Retail Australia, “David Jones collapse imminent after landlord talks break down – report”, 4 Nov 2026: https://insideretail.com.au/sectors/department-stores/david-jones-collapse-imminent-after-landlord-talks-break-down-report-202611
