Iconic Australian department store David Jones has entered administration, placing the future of the 188-year-old retailer and its 6,000 employees in doubt after it failed to pay rent to Westfield.
Dozens of stores nationwide could shut, customers may lose the ability to redeem gift vouchers and suppliers face potentially significant unpaid bills.
Chief executive Erica Berchtold said in a statement on Thursday that David Jones’ physical and online stores would continue trading.
‘David Jones is an iconic company, and so many Australians have stories and memories of visiting DJ’s stores,’ she said. ‘I thank our customers, team members and partners for their continued support during this period.’
‘We have a well-developed plan to reset the business for the future and will work with the administrators, receivers and our secured lender as we continue pursuing that reset.’
The collapse came after rescue talks with major landlord Scentre Group, which owns Westfield shopping centres, broke down over rent relief and the closure of loss-making stores.
David Jones had sought a suspension of rent payments and approval to close several stores before their leases expired.
The retailer also reportedly asked landlords to release about $70 million held as lease security so it could meet staff and supplier payments.
Scentre said David Jones had breached its lease agreements by failing to pay its October rent.
The property group reportedly offered to defer rent payments and allow the retailer to close some Westfield stores over the following 12 months.
However, David Jones’ private equity owner, Anchorage Capital Partners, rejected the proposal, clearing the way for the retailer to enter administration.
Iconic Australian department store David Jones has entered administration
David Jones’ financial position has faced renewed scrutiny after the retailer reported a $95.5 million pre-tax loss for the year to June 29, 2026, as sales fell 8.7 per cent. Australian model Miranda Kerr is pictured with former group general manager Sacha Laing in 2011
‘We made a generous offer to Anchorage Capital Partners that would have enabled David Jones to continue trading, but that offer was disappointingly rejected,’ Scentre chief executive Elliott Rusanow said.
Staff were expected to receive a briefing later on Thursday about what the administration would mean for their jobs.
Stores considered highly likely to close include Westfield Parramatta and Warringah Mall in New South Wales; Carindale, Indooroopilly Shopping Centre, Robina Town Centre and Sunshine Plaza in Queensland; Westfield Marion in South Australia; Westfield Doncaster and Southland in Victoria; and Carousel, Booragoon and Karrinyup Shopping Centre in Western Australia, according to analysis by financial services firm MST Marquee.
Established in Sydney in 1838, David Jones is recognised as the world’s oldest continuously operating department store trading under its original name.
South Africa’s Woolworths Holdings acquired the chain for about $2.1 billion in 2014 before selling its operating business to Anchorage Capital Partners for $100 million in 2023.
Retail expert Barry Urquhart said the crisis represented the end of an era for the Australian retailer.
‘The inevitability is that we will not be seeing David Jones around in the very near future,’ Mr Urquhart told ABC.
As the retailer searches for a new owner, he warned that the brand could disappear altogether.
‘Unfortunately, department stores worldwide are experiencing a very, very rapid rate of attrition.
The busy David Jones Market Street store in Sydney in the early 1980s
A David Jones food court in 1968
Customers enter the David Jones city store in the early hours of December 26, 2013, for the start of Boxing Day sales
‘Since 1946, or the end of World War II, Australia has lost more than 23 department stores.
‘The department store model is therefore obsolete and redundant.’
Mr Urquhart said David Jones’ most pressing problem was a lack of funding.
‘The issue facing David Jones is not retail, merchandising, advertising or marketing. It is undercapitalisation.
‘The business does not have enough funding to sustain itself, expand and remain competitive in the marketplace.’
He also pointed to the Covid-19 pandemic as a major turning point, with lockdowns placing retailers under enormous financial pressure.
‘When the Covid-19 pandemic began in February 2020, many communities, towns and businesses shut down, creating a huge impact on cash flows and debt levels,’ he said.
However, David Jones’ difficulties began well before the pandemic, as changing shopping habits reshaped Australian retail.
Model Megan Gale, right, gestures after officially opening the first stage of the David Jones Bourke Street Mall store in 2009
Online shopping had been claiming an increasing share of retail sales since the early 2000s. The pandemic accelerated the shift, with online purchases rising to almost 20 per cent of total sales.
For David Jones, whose reputation was built around the in-store experience, that change delivered a major blow.
The retailer’s decline stands in stark contrast to its glamorous heyday, when its brand ambassadors included Lauren Hutton, Miranda Kerr, Megan Gale and Jessica Gomes.
Its catwalk shows were similarly star-studded, featuring leading names from the modelling world such as Linda Evangelista, Jesinta Franklin and Gigi Hadid.
Advertising expert Dee Madigan, who owns Creative Edge, told the Today Show that David Jones’ management had failed to modernise the business or give shoppers a compelling reason to visit its stores instead of shopping online.
‘If I were David Jones, I would probably have just four or five flagship stores, supported by a strong online experience.
‘But I would invest heavily in creating an in-store experience that customers simply could not replicate online.
‘That could mean stylists, champagne nights or free coffee. Bring back the piano player. Really focus on building the brand.’
Many Australians have criticised the shopping experience in recent years, describing some stores as deserted ghost towns.
‘The fitting rooms are dirty, the carpet is dated, there is a hole the size of a plate in the ceiling and a dirty bandage on the floor,’ one disappointed Sydney customer wrote.
David Jones’ owners say its 43 stores across Australia and New Zealand attract about 50 million visits each year and serve five million customers. The network includes flagship stores in the central business districts of Sydney and Melbourne.
