David Jones, an iconic Australian department store, is reportedly on the verge of entering voluntary administration, with administrators expected to be appointed as early as Thursday.
The news follows the collapse of last-minute negotiations between the retailer and its landlords, described as 'irreconcilable' by sources familiar with the matter. Scentre Group, a major landlord, stated it had offered a "very generous" lifeline to David Jones and its owners, Anchorage Capital, but this offer was rejected.
"The decision of what happens with David Jones now sits in the hands of Anchorage," said Elliott Rusanow, CEO of Scentre Group, noting that the group's rental income from David Jones was already below average.
David Jones has faced increasing financial pressure, recording a $95.5 million pre-tax loss for the year ending June 29, 2026, accompanied by an 8.7 percent drop in sales. Reports suggest that dozens of its 38 stores across Australia and New Zealand could close, with the company aiming to reduce its footprint to between 12 and 20 locations.
The retailer's auditor, PwC, had not yet signed off on its accounts, which were due by October 30. David Jones also filed its 2025 financial accounts six months late.
Founded in Sydney in 1838, David Jones is recognized as the world's oldest department store still operating under its original name. South African company Woolworths Holdings acquired it for approximately $2.1 billion in 2014, before selling the operating business to Anchorage Capital Partners for a reported $100 million in 2023.
Marketing Focus managing director Barry Urquhart commented that the retailer had "been in trouble for some time," citing the Covid-19 pandemic as a significant turning point that impacted cash flows and debt levels for many businesses. David Jones previously closed stores in Castle Towers and Tuggerah in January.