David Jones, the Australian department store chain once owned by South African retailer Woolworths, was placed into voluntary administration on Thursday.
Voluntary administration in Australia is similar to business rescue in South Africa. The 188-year-old chain has been hurt by rising costs, slow retail sales and supply chain pressure, News24 reported.
“A transaction process seeking offers for a recapitalisation of the business or a sale as a going concern will commence immediately, and will be managed by McGrathNicol,” FTI Consulting and McGrathNicol said in a joint statement.
McGrathNicol has been appointed as the voluntary administrators. FTI Consulting was appointed as receivers and will manage the company and its assets during the process.
The stores will stay open under FTI Consulting’s control while the firm reviews how the business runs. “We will manage this process carefully, mindful of the impact on some stakeholders but also recognising the need for difficult decisions,” the two firms said.
David Jones has about 6 000 employees across 38 stores in Australia and New Zealand. It is one of Australia’s best known brands.
Chief executive Erica Berchtold said the retailer had “a well-developed plan on how to reset the business for the future.” She said the company would work with the administrators, the receivers and its secured lender.
Woolworths bought David Jones in 2014 for about R21.4 billion. It sold the chain at a loss in 2022 for R4.4 billion.
That sale cleared liabilities worth R21.6 billion for the South African retailer, including leases. The buyer was private equity firm Anchorage Capital Partners.
Woolworths still has some exposure to David Jones, because some of its products are sold in the stores, according to News24.
Woolworths first kept ownership of the Bourke Street flagship store in Melbourne, which was leased long term to David Jones. It sold that building on 30 January 2025 to Australian fund manager IP Generation for $223.5 million.
Scentre Group, which runs Westfield shopping centres in Australia and New Zealand, offered David Jones a lifeline. ABC News reported that Anchorage Capital rejected the offer, citing Scentre chief executive Elliott Rusanow.
David Jones has stores at 17 Westfield sites. In a statement to the Australian Securities Exchange on Wednesday, Scentre said David Jones had paid rent up to 30 September.
The retailer was founded in Sydney in 1838 by Welsh immigrant David Jones. It calls itself the world’s oldest department store that has run without a break, and it is older than London’s Harrods.
The chain has struggled for more than ten years. Online shopping and fast fashion chains have eaten into the traditional department store model, News24 reported.
US luxury department store owner Saks Global faced similar trends. It left Chapter 11 bankruptcy in June after nearly five months, with fewer than half of its stores.
The news about David Jones was released before the JSE opened on Thursday.
Source: this article is based on reporting by News24. Image: News24. Written with the help of AI and published by the Tzaneen Voice Business desk. See our Editorial Standards.
Anelisa Nkuna covers business and money news for Tzaneen Voice. Anelisa reports on the rand, fuel prices, interest rates, jobs, Eskom, Transnet, farming and company results. The aim is simple: explain what the numbers mean for household budgets, small businesses and workers in South Africa.