Australian retailer David Jones could appoint administrators within hours, report says

Iconic Australian department store David Jones could enter voluntary administration as soon as Thursday, according to a report.

Sources told the Australian Financial Review on Wednesday that the development followed the “irreconcilable” breakdown of last-minute negotiations between the retailer and its landlords.

The AFR reported that McGrathNicol was expected to act as David Jones’ voluntary administrator, while lender Hilco Capital was expected to appoint FTI Consulting as receiver.

Scentre Group chief executive Elliott Rusanow said the major landlord had offered David Jones and owner Anchorage Capital a “very generous” lifeline, but claimed 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 through this particularly busy period, keep people employed and keep its doors open for customers.

“It seems they have rejected that offer, and therefore the decision about what happens with David Jones now rests with Anchorage.”

Scentre said its $45 million annual gross rent for the store was equivalent to about $352 per square metre—well below the $942 per square metre average paid by its other tenants.

The retailer’s financial difficulties came into sharper focus after David Jones reported a $95.5 million pre-tax loss for the year to June 29, 2026, alongside an 8.7 per cent decline in sales.

Reports on Tuesday said dozens of David Jones stores around Australia could shut, 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 and is understood to be considering reducing that number to between 12 and 20.

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, The Australian Financial Review reported.

The Daily Mail has contacted David Jones and Anchorage Capital for comment. The retailer also lodged its 2025 financial accounts six months late.

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At the time, a David Jones spokeswoman told the Daily Mail: “The company is finalising its FY26 accounts and does not comment on speculation regarding potential store closures.”

David Jones confirmed last week that it was reviewing its Australian store portfolio, along with trading terms involving suppliers and brand partners.

A spokesperson declined to address “speculation in the media”, saying chief executive Erica Berchtold was focused on accelerating the company’s strategy.

Founded in 1838 in Sydney, the retailer is recognised as the oldest continuously operating department store in the world still trading under its original name.

South Africa’s Woolworths Holdings bought David Jones for about $2.1billion in 2014 before selling the retailer’s operating business to Anchorage Capital Partners for a reported $100million in 2023. 

The review had prompted concern 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 the Daily Mail last week.

He argued that the decline in the giant’s reported sale value reflected the extent of its problems, adding that the retailer had ‘been in trouble for some time’.

Mr Urquhart also identified the Covid-19 pandemic as a major turning point, with widespread closures placing significant pressure on retailers. 

‘With the onset of the Covid-19 pandemic in February 2020, a lot of communities, towns, businesses closed down and therefore that had a huge impact on cash flows, debt levels,’ he said.

In January, David Jones closed its stores at Castle Towers in Sydney and Tuggerah on the NSW Central Coast.