David Jones collapse leaves suppliers stranded with unpaid stock
David Jones entered voluntary administration Thursday, trapping small suppliers with unpaid stock and lost merchandise.
David Jones entered voluntary administration on Thursday, trapping small suppliers who had sent merchandise to the iconic retailer. Porter Jewellery in Bondi sent $50,000 worth of stock the morning administration was announced but could not retrieve it.
K Juliet, which makes premium cotton robes, had just launched its line at David Jones weeks before. The company was paid for only a quarter of its first order and has unpaid stock in stores.
K Juliet's co-founder told media the collapse has put the business at serious risk. "We were finally about to make it," she said.
"But this can break a small business like ours." Receivership firm FTI Consulting is restructuring David Jones while seeking a buyer.
- $50,000
- Porter Jewellery stock value
- One quarter of first order
- K Juliet payment received
- Few weeks before administration
- K Juliet launch timing
- FTI Consulting
- Receivership firm
Why it mattersSmall suppliers face financial ruin if they cannot recover unpaid invoices and retrieve stock trapped in David Jones' administration.
AustraliaAustralian small suppliers have lost cash flow and face uncertainty over payment and stock recovery during the critical summer trading season.
