Australia’s oldest department store, David Jones, collapsed on Thursday after nearly 200 years, falling victim to online competition and economic pressures. Executives from Mc Grath Nicol were appointed voluntary administrators, while FTI Consulting staff were named receivers. The chain, which operates 38 stores across Australia and New Zealand, continues trading as administrators seek buyers or recapitalization.
Founded in 1838 by Welsh immigrant David Jones, the retailer struggled with outdated store formats and rising costs. A cost-of-living crisis has further strained household spending. Private equity firm Anchorage Capital Partners bought the company in 2023. “The current retail trading environment, rising costs, a significant and outdated retail footprint, and supply-chain challenges have led to this point,” said Christopher Hill of FTI Consulting.
CEO Erica Berchtold said the company has a “well-developed plan” to reset the business. Talks with landlords, including Scentre Group, failed to yield a resolution, though rent was paid through September 30.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing