David Jones enters administration as Anchorage's turnaround fails
Anchorage Capital Partners has put David Jones into administration this week after three years of attempted turnaround.
The private equity firm bought the department store in 2023 but has now handed it to administrators. Anchorage says it invested capital and took no dividends.
The department store faced headwinds from online shopping and changing fashion trends. David Jones spent $18 million more on stores than rival Myer over the past two years despite having 18 fewer locations.
This raises questions for founder Dick Smith, who recalls Dick Smith Electronics, which collapsed in 2016 after Anchorage bought it for about $10 million and listed it at a $520 million valuation.
- About $10 million
- Dick Smith Electronics purchase price
- $520 million
- Dick Smith Electronics IPO valuation
- $18 million more than Myer
- Extra store investment by David Jones
- 82
- Dick Smith's age
Why it mattersDavid Jones administration means store closures are likely coming, and customers may face disruption to refunds, gift cards and loyalty programs during the restructure.
AustraliaDavid Jones stores across Australia will likely face closure or restructuring. Employees face potential job losses. Customers with gift cards or loyalty balances face uncertainty during administration.
✓ Claims checked against the source. checked 2 h ago
