David Jones is poised to close a significant number of its stores across Australia, as the retailer undertakes a review of its national presence. The department store chain, which currently operates 38 locations in Australia and New Zealand, is reportedly aiming to reduce its store count to between 12 and 20.
The company is scrutinizing five stores in Westfield shopping centers that are believed to be loss-making. These locations include stores in Carousel, Perth; Parramatta and Hornsby in Sydney; Woden in Canberra; and Southland in Melbourne. The Daily Mail has contacted David Jones for comment.
This move comes as the auditor, PwC, has yet to sign off on the company's accounts, which were due to be filed with the Australian Securities and Investments Commission (ASIC) by October 30.
A retail expert, Barry Urquhart, managing director of Marketing Focus, stated that the decline in David Jones' reported sales value indicates the depth of its issues. "The inevitability is we will not be seeing David Jones around in the very near future," Urquhart said, adding that the retailer "has been in trouble for some time."
Urquhart also pointed to the COVID-19 pandemic, which began in February 2020, as a critical turning point that placed immense pressure on retailers due to widespread closures and their impact on cash flow and debt levels.
David Jones was acquired by South Africa's Woolworths Holdings for approximately $2.1 billion in 2014. In 2023, its operating business was reportedly sold to Anchorage Capital Partners for $100 million.