David Jones Faces Voluntary Administration After Rent Dispute
David Jones may appoint voluntary administrators on November 5 after failing to pay rent and rejecting a financial lifeline from major landlord Scentre Group.
The 188-year-old department store David Jones (Department Store) is expected to enter voluntary administration as early as Thursday, November 5, 2026. The move follows the collapse of restructuring negotiations with its largest landlord, Scentre Group, and a failure to pay rent since September 30. Scentre Group CEO Elliott Rusanow stated that a "generous offer" to facilitate continued trading was rejected by the retailer's owner, Anchorage Capital Partners.
Financial instability has plagued the retailer, which recorded a $95.5 million pre-tax loss for the year ending June 29, 2026, with sales falling 8.7 percent. The company also missed its October 30 deadline to file financial accounts with the Australian Securities and Investments Commission. While lender Hilco Capital provided approximately $10 million in additional funding to secure Christmas stock, suppliers have begun restricting terms due to lengthening payment periods.
As part of a footprint review, the company is considering reducing its 38 stores across Australia and New Zealand to between 12 and 20 locations. The Shop, Distributive and Allied Employees Association has warned that such closures could lead to mass redundancies for thousands of workers. If the company collapses, McGrathNicol is expected to serve as the voluntary administrator, while FTI Consulting may be appointed as receiver by Hilco Capital.
