Shrink or sink: David Jones sheds half its stores
David Jones will close 19 stores across Australia and New Zealand – receivers halving the department chain’s retail footprint.
Seven are in New South Wales: Green Hills, Hornsby, Macarthur Square, Macquarie Centre, Parramatta, Warringah Mall and Wollongong Central.
Three will shut in Victoria, at Glen Waverley, Highpoint and Malvern Central.
Another trio will also close in Western Australia (Carousel, Garden City and Hay Street Mall), while two will cease trading in Queensland (Robina Town Centre on the Gold Coast and the Sunshine Plaza) and South Australia (Marion and West Lakes).
The Woden, Canberra and Newmarket, Auckland, outlets, round out the closures, expected to take effect at the end of the year; the stores will continue trading for now with some stocking up ahead of an expected Christmas rush.
FTI Consulting’s Christopher Hill, David McGrath and Joanne Dunn were appointed receivers of David Jones’ parent company, ACP Riley Street Midco Pty Ltd, following the retailer’s entry into voluntary administration last week.
The restructure puts c6000 jobs at risk – full and part time staff and concession workers employed by third-party brands operating within stores.
Shrink or sink
The receivers said the store reductions were necessary to give the retailer a viable future.
The closures follow negotiations with landlords over rent relief and a smaller network (continues below).
Scentre Group, which operates Westfield shopping centres, was among the landlords involved in discussions. It said prior to that, last week, the retailer refused a “generous” offer to continue trading through the busy Christmas period.
David Jones’ future footprint depends partly on reaching revised lease arrangements.
Founded in 1838 and considered Australia’s oldest retailer, the business was acquired by South Africa’s Woolworths Holdings for about $2.1 billion in 2014 before being sold to private equity firm Anchorage Capital Partners for about $100 million in 2023.
A bulk of the valuable real estate associated with the business was sold down during that time, including the Castlereagh St, Sydney, store, which Charter Hall bought for $510m with a 20-year leaseback in 2020.
The Bourke Street Mall flagship was also sold, in late 2024, for $223.5m with a leaseback.
IP Generation, now part of MA Financial, was that buyer.
The ex-menswear store opposite that traded, six years ago, to Newmark Capital, and has now been repurposed with a Mecca store and offices.
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