David Jones to Close 19 Stores in Urgent Restructure
FTI Consulting announced the closure of half of David Jones' store network as the 188-year-old retailer undergoes an urgent restructure under receivership.
Receivers FTI Consulting announced Wednesday that David Jones will close 19 of its 38 stores by the end of the year. The closures target half of the retailer's network, primarily affecting suburban locations across New South Wales, Victoria, Western Australia, Queensland, South Australia, the ACT, and the company's only New Zealand store in Auckland.
The 188-year-old department store entered voluntary administration last week following steep losses and unpaid rent. While FTI Consulting manages daily operations, administrators McGrathNicol are seeking a buyer, with expressions of interest due by Friday. Private equity owner Anchorage Capital is expected to propose a repurchase of the chain.
CEO Erica Berchtold stated the current store portfolio is no longer financially sustainable. To protect its interests, primary secured lender Hilco Global has deployed representatives to the closing stores to accelerate sales.
