David Jones faces store closures and potential administration this week
David Jones faces administration unless it closes half its stores and wins rent relief.
David Jones is in crisis. The iconic retailer lost more than $95 million last year as sales dropped to $2 billion, and now owner Anchorage Capital is in intense talks to close as many as half of its 38 stores by Christmas.
If it cannot reach a deal with landlords like Scentre, the company could go into administration within days. About 4,644 workers are covered by the union agreement, with 5,652 total employees facing possible redundancy.
Suppliers are already tightening credit terms because of the risk. Lender Hilco Capital has funded the business to stock up for Christmas trade, but the retailer's survival hangs on landlord concessions and store closures.
- More than $95 million
- Annual losses
- $2 billion
- Annual sales
- 5,652
- Total employees at risk
- Up to half of 38
- Stores potentially closing
Why it mattersThousands of jobs are at risk, and if David Jones collapses, suppliers and workers could lose money owed to them.
AustraliaUp to 5,600 Australian workers could lose jobs; shoppers should check that gift cards are redeemable before using them.
✓ Claims checked against the source. checked 6 h ago
