The future of David Jones is hanging in the balance after administrators were appointed on Thursday, with store closures feared. Photograph: Joel Carrett/AAPView image in fullscreenThe future of David Jones is hanging in the balance after administrators were appointed on Thursday, with store closures feared. Photograph: Joel Carrett/AAPDavid Jones goes into administration, with store closures expected and thousands of jobs at riskFuture of department store in jeopardy after administrators appointed on Thursday morning
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Australia’s premier upmarket department store David Jones has collapsed into voluntary administration, putting thousands of jobs at risk and leaving the future of the 188-year-old retailer hanging in the balance.
The upheaval follows years of steep losses and underperforming stores that left the heritage retailer falling behind on rent, culminating in a breakdown of negotiations with its primary landlord, Westfield owner Scentre Group.
Staff were informed on Thursday that the David Jones board had appointed voluntary administrators from McGrathNicol, before the retailer’s main financier promptly installed FTI Consulting as receivers.
Under the dual appointment, FTI will take day-to-day control of operations, running the department store network while it restructures the business.
The process will almost certainly trigger immediate store closures, though receivers will try keep the core network open while hunting for fresh capital.
David Jones employs more than 6,000 staff across a network of 38 stores.
Fox Style News Syndicate. Sourced from broadcast reporting: Read Full Source Coverage.