Iconic Australian department store David Jones has entered voluntary administration, putting the future of the 188-year-old retailer and its 6,000 employees at risk after it failed to pay rent to Westfield while online shopping continued to erode its business.
Dozens of stores around the country could be forced to shut, leaving suppliers facing significant unpaid bills.
Chief executive Erica Berchtold said in a statement on Thursday that David Jones’ physical outlets and online operation 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 of David Jones 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.’
Employees are expected to receive a briefing later this morning about what the administration process means for their jobs.
Insolvency specialists McGrathNicol have been appointed as administrators, while FTI Consulting has taken on the role of receiver.
The crisis came after rescue negotiations with major landlord Scentre Group, the owner of Westfield shopping centres, collapsed over rent relief and the proposed closure of loss-making outlets.
Australian retail icon David Jones has entered voluntary administration
David Jones’ finances have come under renewed pressure after the retailer posted a $95.5million pre-tax loss for the year to June 29, 2026, as sales dropped 8.7 per cent. Pictured, Australian model Miranda Kerr with former Group General Manager Sacha Laing in 2011
David Jones had asked for a temporary suspension of rent payments and sought approval to close several stores before their leases ended.
The retailer also reportedly sought the release of about $70million held as lease security, intending to use the funds to pay employees and suppliers.
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 shut some Westfield locations during the next 12 months.
However, Anchorage Capital Partners, David Jones’ private equity owner, rejected the proposal, clearing the way for the company to enter administration.
‘We made a generous offer to Anchorage Capital Partners that would have enabled David Jones to continue trading, and it is disappointing that they rejected it,’ Scentre CEO Elliott Rusanow said.
Financial services firm MST Marquee has identified a number of stores considered highly likely to close. They include Westfield Parramatta and Warringah Mall in NSW; 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.
Established in Sydney in 1838, David Jones is regarded as the world’s oldest continuously operating department store still trading under its original name.
The bustling David Jones Market Street store in Sydney in the early 1980s
Customers at 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
South Africa’s Woolworths Holdings acquired the chain for about $2.1billion in 2014, before selling its operating business to Anchorage Capital Partners for $100million in 2023.
Retail analyst Barry Urquhart said the latest crisis could signal the end of an era for the Australian retailer.
‘The reality is that we may not see David Jones operating for much longer,’ Mr Urquhart told ABC.
As the retailer looks for a new owner, he warned that the brand could ultimately vanish.
‘Unfortunately, department stores worldwide are disappearing at an incredibly rapid rate.
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‘In Australia, since 1946, or the end of World War II, we have lost more than 23 department stores.
‘The department store model has therefore become obsolete and redundant.’
Mr Urquhart said David Jones’ most pressing issue was a shortage of capital.
Model Megan Gale, right, gestures after officially opening Stage One of the David Jones Bourke Street Mall store in 2009
‘The problem 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 critical moment, saying lockdowns placed retailers under enormous financial strain.
‘When the Covid-19 pandemic began in February 2020, many communities, towns and businesses shut down. That had a major effect on cash flows and debt levels,’ he said.
However, David Jones’ difficulties predated the pandemic, with changing consumer habits reshaping the Australian retail sector.
Online shopping had been claiming an increasing share of retail spending since the early 2000s. The pandemic accelerated the shift, pushing online purchases to almost 20 per cent of total sales.
That change hit David Jones particularly hard because the retailer had long relied on the appeal of its in-store experience.
The company’s decline stands in sharp contrast to its glamorous heyday, when its brand ambassadors included Lauren Hutton, Miranda Kerr, Megan Gale and Jessica Gomes.
Its fashion shows were also major events, featuring leading models such as Linda Evangelista, Jesinta Franklin and Gigi Hadid.
Advertising specialist Dee Madigan, who runs Creative Edge, told the Today Show that David Jones’ management had failed to modernise the company or give customers a compelling reason to visit its stores instead of shopping online.
‘If I were running David Jones, I would probably focus on four or five flagship stores and build a strong online experience around them.’
‘But I would invest heavily in creating an in-store experience that people simply could not reproduce online.’
‘That could mean stylists, champagne evenings, complimentary coffee or bringing back the piano player. The brand needs to feel special again.’
In recent years, many Australians have criticised the shopping experience, with some describing David Jones stores as deserted ghost towns.
‘The fitting rooms are dirty, the carpet is filthy and outdated, there is a hole the size of a plate in the ceiling and a dirty band-aid on the floor,’ one disappointed Sydney shopper wrote.
David Jones’ owners say its 43 stores across Australia and New Zealand receive about 50 million visits each year and serve five million customers. The network includes flagship outlets in the central business districts of Sydney and Melbourne.