David Jones faces administration risk; spend gift cards now
David Jones may enter voluntary administration, putting gift cards at serious risk.
The iconic Australian department store is facing an uncertain future. The store may enter voluntary administration.
When this happens, an expert takes over. The expert decides whether to restructure, sell or close the business.
Gift card holders are at serious risk. Consumer experts say people should spend existing cards now.
They should not buy new ones. If David Jones closes, gift card holders are unsecured creditors.
They could get nothing. Or they might get only cents on the dollar.
When Dick Smith went into receivership in 2016, customers lost money on gift vouchers entirely. Administrators might honor the cards.
But they may add extra conditions, such as requiring more purchases.
- Dick Smith, 2016 receivership
- Comparison case
- Unsecured, back of recovery line
- Creditor status
Why it mattersIf David Jones collapses, customers could lose money on gift cards, outstanding orders or unpaid deposits. They would have limited legal recourse.
AustraliaMany Australian shoppers hold David Jones gift cards or have items on order; the retail chain's collapse would affect Christmas shopping and refund options for thousands.
✓ Claims checked against the source. checked 54 min ago
