Concerns have been sparked about the longevity of one of Australia’s most historic department stores following an alarming report that disclosed it was taking twice as long as usual to settle bills with its suppliers.
Founded in 1838, David Jones had announced last year that it would be shuttering two locations in Castle Hill and Tuggerah on New South Wales’ Central Coast by 2026.
Currently, the retailer operates over 40 outlets nationwide, employing nearly 9,000 people across Australia and New Zealand.
However, recent findings from the commercial credit firm CreditorWatch indicate that David Jones is now taking 16 days to pay suppliers.
This duration exceeds the industry standard of seven days by more than double.
It’s common for businesses to stagger invoice payments to manage cash flow effectively, and this does not inherently suggest financial difficulties.
The agency ranked David Jones as having a ‘low’ risk of default within the next year.
This means ‘unfavourable economic conditions may lead to a weakened capability to meet financial commitments’, the report notes.
David Jones’ average overdue payments to suppliers were 16 days – more than double the industry average, according to a new report by a commercial credit agency
The department store announced Castle Hill and Tuggerah stores on the NSW Central Coast would close in 2026 after 34 years (pictured)
The retailer’s most recent financial report to ASIC in March 2025, seen by the Herald Sun, reported a net loss of $74.4million from $2.2billion in gross sales during the financial year up to June 30, 2024.
David Jones recorded a ‘bullet loan’ of $26.3million, which was due to ‘mature’ in September 2024 – meaning it must then be paid in full.
Another important loan was for $150million to fund working capital, which matures on March 27 this year.
It also reportedly extended payment times to its suppliers, raising questions over whether the $150million loan can be resolved by next week.
The Daily Mail has contacted David Jones’ business operations owner, Anchorage Capital Partners, for comment.
Many of David Jones’ major partners have already agreed to the streamlined payments approach, with further discussions underway.
A spokesperson for David Jones said the decision to push out payments to suppliers was part of broader approach across the company.
‘We are streamlining our operational and financial processes to build a stronger, more efficient, and more sustainable business model,’ they said.
A spokesperson for David Jones has said the company’s decision to push out payments to suppliers was part of ‘streamlining’ the ‘operational and financial processes’
‘This includes implementing a new supplier payment process within our Oracle finance system, enhancing our Purchase Order procedures and updating our standard payment terms to reflect these improvements and enable continued investment in growth and innovation.’
Private equity investors Anchorage Capital Partners bought David Jones’ operating business in 2022 for about $100million.
A statement from the company claimed customers have been benefiting from a $250million transformation program aimed at improving long-term growth.
‘This includes major store refurbishments, the launch of a mobile app, the evolution of its e-commerce platform, and the launch of a new loyalty program,’ they told the Herald Sun.
‘Trading conditions for David Jones in the first half of the 2026 financial year have been strong and show growth on the previous comparable period.
‘We intend to continue investing in the business, supported by our financial partners, and look forward to enabling continued growth and innovation for David Jones.’
Months of high inflation have squeezed Australian retailers, forcing many to cut staff, scale back operations or shut their doors entirely.
Peak policy and advocacy body Business NSW released its Business Conditions Survey (BCS) in December, which found companies in the state faced a tough lead-up to Christmas due to rising rates.
The study, conducted from November 2 to 17, revealed customers are spending less, pushing for discounts and delaying invoice payments when compared with last year.
Almost half (42 per cent) of businesses surveyed reported fewer purchases, while 37 per cent said average order sizes have shrunk.
Only 18 per cent had seen more frequent purchases.
