Iconic Australian department store David Jones could enter voluntary administration as soon as Thursday following a board meeting, according to a report.
The development came after last-minute negotiations between the retailer and its landlords reportedly broke down irreconcilably, sources told the Australian Financial Review on Wednesday.
The AFR said it had spoken with several people familiar with the situation, all of whom requested anonymity because of the sensitivity of the discussions.
Scentre Group chief executive Elliott Rusanow said the major landlord had presented David Jones and its owner, Anchorage Capital, with a “very generous” offer designed to support the retailer. He said the proposal was rejected.
“The decision of what happens with David Jones is actually determined by its owner Anchorage,” he told NewsCorp on Wednesday.
“We have been in discussions with Anchorage, and we made a very generous offer that would have allowed David Jones to continue trading, particularly through this exceptionally busy period, while keeping people employed and its stores open for customers.
“It seems they have rejected that offer, and therefore the decision about what happens with David Jones now sits with Anchorage.”
Scentre said its annual gross rent of $45million for the store was equivalent to about $352 per square metre, well below the average of $942 per square metre paid by other tenants.
Iconic Australian department store David Jones could appoint voluntary administrators on Thursday after a board meeting, according to a report
David Jones’ financial position has faced renewed scrutiny after the retailer reported a $95.5million pre-tax loss for the year to June 29, 2026, while sales dropped by 8.7 per cent
Pressure on David Jones has intensified since the retailer reported a $95.5million pre-tax loss for the year ended June 29, 2026. Sales declined by 8.7 per cent over the same period.
Reports on Tuesday suggested that dozens of David Jones stores could shut across Australia, including five outlets located in Westfield shopping centres, as the company reassesses its retail footprint.
The department store chain operates 38 locations across Australia and New Zealand but is understood to be considering a reduction to between 12 and 20 stores.
PwC had not yet signed off on the company’s accounts, which were due to be lodged with the Australian Securities and Investments Commission (ASIC) by October 30, according to The Australian Financial Review.
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Our News Outlet has contacted David Jones for comment. The retailer also submitted its 2025 financial accounts six months after the deadline.
At the time, a David Jones spokeswoman told Our News Outlet: “The company is finalising its FY26 accounts and does not comment on speculation regarding potential store closures.”
The retailer confirmed last week that it was reviewing its Australian store portfolio, along with trading arrangements involving suppliers and brand partners.
A spokesperson declined to address what was described as “speculation in the media”, but said chief executive Erica Berchtold was focused on accelerating the company’s strategy.
Marketing Focus managing director Barry Urquhart
Established in Sydney in 1838, David Jones is widely regarded as the world’s oldest continuously operating department store still trading under its original name.
South African company Woolworths Holdings acquired David Jones for about $2.1billion in 2014. It later sold the retailer’s operating business to Anchorage Capital Partners for a reported $100million in 2023.
The latest review has raised serious concerns about the department store’s future, including from Marketing Focus managing director Barry Urquhart.
“The inevitability is we will not be seeing David Jones around in the very near future,” Mr Urquhart told Our News Outlet last week.
He said the steep fall in the company’s reported sale value highlighted the scale of its difficulties, arguing that the retailer had “been in trouble for some time”.
Mr Urquhart also pointed to the Covid-19 pandemic as a critical turning point, saying widespread closures placed significant financial pressure on retailers.
“With the onset of the Covid-19 pandemic in February 2020, a lot of communities, towns and businesses closed down, and that had a huge impact on cash flows and debt levels,” he said.
In January, David Jones shut its stores at Castle Towers in Sydney and Tuggerah on the NSW Central Coast.
