David Jones faces wind-up after breaking loan covenant
David Jones broke a loan covenant with Hilco Global. The lender may now shut down the 190-year-old retailer.
David Jones has broken a loan covenant with Hilco Global, its main lender from the UK. This may lead to the company being wound up.
Hilco put more capital into the retailer last week to boost Christmas stock. Hilco did not accelerate the loan.
The struggling department store chain reported a $95.5 million pre-tax loss. Sales fell almost 9 per cent.
Major fashion brands including Country Road, Witchery and Mimco are pulling back their presence. Luxury labels like Gucci, Chanel and Christian Dior have already reduced their presence.
Two stores have closed this year. Online retailers and shrinking demand for department stores are putting pressure on the company.
- 95.5 million dollars
- Pre-tax loss
- Almost 9 per cent
- Sales decline
- 190 years old
- Retailer age
Why it mattersOne of Australia's oldest department stores may close. This threatens thousands of jobs and a landmark retailer.
AustraliaIconic Australian department store faces potential shutdown; customers and workers' futures uncertain.
Corroborated bynews.com.au
✓ Claims checked against the source. checked 2 h ago
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