Australia’s oldest department store collapsed into voluntary administration last week after years of steep losses
David Jones is set to shutter half its department store network, triggering mass job losses under a sweeping restructure, receivers FTI Consulting said on Wednesday.
David Jones employs more than 6,000 staff across 38 stores.
FTI said in a statement that it would proceed with an “urgent restructure of the business”.
“As part of this restructure, the receivers have commenced an immediate consultation process for all staff associated with 19 stores that have been identified for closure,” FTI said.
“For the immediate term these stores will continue trading and while there is no final date for the closures, we anticipate they will cease trading by the end of the year.”
Under a dual appointment, receivers FTI has day-to-day control of operations, while administrators McGrathNicol seek a buyer or fresh injection of capital.
The upheaval follows years of steep losses after the retailer failed to carve out a profitable niche in a sector disrupted by online competitors and stand-alone upmarket stores.
The department store collapsed into voluntary administration last week.
In documents released late on Tuesday, David Jones’s administrators revealed they reviewed the private equity-owned department chain’s finances months before it fell into administration.
Some small suppliers are owed money dating back to stock sent in April, well before David Jones missed rent payments and fell into administration.
Its private equity owner, Anchorage Capital, has long sought a slimmed down version of David Jones, free from long-term leases on underperforming sites. It is expected to make a proposal to administrators to re-purchase the 188-year-old chain.
The following stores will be closed: Carousel, WA, Garden City, WA, Glen Waverley, VIC, Green Hills, NSW, Hay Street Mall, WA, Highpoint, VIC, Hornsby, NSW, Macarthur Square, NSW, Macquarie Centre, NSW, Malvern Central, VIC, Marion, SA, Newmarket, NZ, Parramatta, NSW, Robina Town Centre, QLD, Sunshine Plaza, QLD, Warringah Mall, NSW, West Lakes, SA, Woden, ACT, Wollongong Central, NSW.
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Source: www.theguardian.com
