David Jones Collapses Into Voluntary Administration, Putting Thousands of Jobs at Risk

David Jones, a department store chain that is 188 years old, has collapsed into voluntary administration. Under that process, an outside professional takes over a financially troubled company to assess its options. The company's board appointed McGrathNicol as the administrators, according to The Guardian. The move puts thousands of jobs at risk, and immediate store closures are expected.

The retailer employs more than 6,000 people across a network of 38 stores, according to the same report. Its collapse follows a period of pressure on its finances. The Australian Financial Review reported that the company had pursued a plan to halve its store network in an attempt to save the business.

The breakdown in its property arrangements has been a central part of the story. According to ABC News, David Jones paid all of its rent up to 30 September 2026 but did not pay rent after that date, which put it in breach of its agreements. Scentre Group, which owns the Westfield shopping centres, was its primary landlord in rent negotiations that broke down before the administration.

Lenders have also been part of the picture. Hilco is a major lender to David Jones, the Daily Telegraph reported. FTI Consulting was installed as receivers by the company's main financier. Receivers are appointed to act for a lender and to take control of assets on its behalf. FTI will take day-to-day control of the department store's operations while the business is restructured.

For the staff and the stores, the next steps are being set by the administrators and the receivers. The Guardian reported that the stores are expected to close immediately, and that thousands of jobs are at risk.