David Jones is set to close half of its department store network, triggering mass job losses under a sweeping restructuring plan, according to receivers FTI Consulting.
The Australian retail giant, which has operated since the 1830s, collapsed into voluntary administration last week after years of steep losses. It employs more than 6,000 staff across 38 stores nationwide.
Closures Affect Smaller-Format Stores
The closures include seven stores in New South Wales, three each in Victoria and Western Australia, two each in Queensland and South Australia, one in the ACT, and David Jones’s sole store in Auckland, New Zealand.
Under a dual appointment structure, FTI Consulting holds day-to-day operational control while administrators McGrathNicol seek potential buyers or capital injections to restructure the business.
Leadership Statement on Store Portfolio Shifts
David Jones chief executive Erica Berchtold told suppliers that the company could no longer operate as its current store portfolio is 'no longer the right shape for the business.' She stated: 'Put simply, our store portfolio is no longer the right shape for the business, and this change is about creating a network that is financially sustainable for the future.'
The announcement comes after internal financial reviews conducted months before administration. Some small suppliers are still owed money dating back to April—before any rent defaults or administrative collapse.
Landlords Respond with Optimism
Westfield owner Scentre Group said its shopping malls remain ‘practically full’ despite the closures and indicated it could bring in new brands into its 17 centres hosting David Jones stores. Other landlords had been aware of the chain’s struggles and were preparing to reassign tenants once closure dates are confirmed.
Workers Face Uncertainty Amid Union Pushes
The Shop, Distributive and Allied Employees’ Association (SDA) has expressed concern over job losses. In a statement, national vice-president Bernie Smith said: 'Today these workers are receiving this terrible news through no fault of their own.'
Smith added that many employees have dedicated significant portions of their careers to David Jones, serving with loyalty and pride. The union is pushing for affected staff to be relocated or granted full redundancy entitlements—rights at risk as the business faces mounting debts.
Hilco Global, David Jones’s primary secured lender, holds decisive influence in its fate by appointing receivers FTI to protect financial interests. Hilco representatives will begin operating within stores slated for closure from Thursday to support promotional activity and accelerate sales.
Critical Context on Consumer Trends
Longtime Melbourne resident Lana Burgess, who visited the Malvern Central store set for closure, said: 'Shopping in the last 20 years has changed. In the old days people used to go into town.'
Burgess noted that online shopping now dominates consumer behavior and added that rising rents—particularly at large retail properties—are a key factor driving out-of-town spending. She observed: 'Now … everyone does their shopping online. I think it’s to do with that and maybe Malvern, the area, is ageing; as I get older I don’t need to buy as much.'
David Jones's private equity owner, Anchorage Capital, has long advocated for a streamlined version of the chain free from long-term leases on underperforming sites. It is expected to propose a repurchase plan to administrators in an effort to revive the 188-year-old brand.