David Jones sale looms as supplier exodus deepens financial crisis
David Jones’ private equity owner is reportedly exploring a sale of the 188-year-old department store as mounting supplier arrears, departing brands and lender intervention threaten its turnaround.
Anchorage Capital Partners has reportedly engaged restructuring advisers McGrathNicol to approach potential buyers.
Brett Blundy’s Brands Collective, UK-based Frasers Group, Authentic Brands Group and rival department store operator Myer are believed to have been contacted.
Voluntary administration could become an option, it is speculated, if the retailer cannot stabilise its finances. No sale or insolvency appointment has been confirmed.
David Jones for sale
Lender Hilco Capital has provided an additional $10 million to help fund stock purchases ahead of Christmas, following a reported breach of a loan covenant.
The funding is intended to support supplier payments and maintain inventory.
David Jones’ supplier relationships have deteriorated, with some demanding upfront payment.
Accent Group stopped supplying David Jones in July, while labels including Acler, Effie Kats, Significant Other and Aston Studio have shifted to exclusive arrangements with Myer.
Luxury brands have also retreated: Gucci has exited, Dior has withdrawn shoes and handbags, and Chanel has stopped selling shoes through the retailer while retaining its cosmetics concession (continues below).
Country Road Group, owned by South Africa’s Woolworths Holdings, plans to remove almost 100 of its more than 280 concessions across David Jones stores from early 2027.
The reductions affect Country Road, Witchery, Mimco, Trenery and Politix.
The financial pressure follows a $95.5m pre-tax loss for the year to June 2025 against $74.1m the previous year.
Sales fell 8.7pc to $2 billion and underlying earnings declined 13.2pc to $176.48m.
Anchorage acquired David Jones from Woolworths Holdings in March 2023 and subsequently backed a $250m transformation program covering store refurbishments, digital operations and its customer offering.
The retailer has since closed outlets at Tuggerah and Castle Towers.
It operates 38 stores across Australia and New Zealand, including its flagship properties in Melbourne’s Bourke Street and Sydney’s Elizabeth Street.
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