David Jones, founded in 1838 and the world’s oldest department store still trading under its original name, is closer to financial ruin than it has ever been, according to the Sydney Morning Herald.
The chain hosted Christian Dior’s first international fashion parade in 1948 and a state banquet for Queen Elizabeth II in 1954. Its decline followed suburban sprawl, local shopping centres, rising labour costs and now online shopping and global players such as Amazon and Temu.
Ownership has changed repeatedly. South Africa’s Woolworths Holdings paid $2.1 billion in 2014, then sold key properties, including the Elizabeth Street flagship for $510 million in a leaseback with a $25.5 million annual rent bill. Anchorage Capital bought the business in December 2022 for a reported $100 million to $150 million.
Chief executive Erica Berchtold is renegotiating with landlords. Sources say the 38-store network could shrink to about 12 to 15 stores, with a third of stores generating 70 per cent of revenue. Lender Hilco can call in receivers at any time.
What it means for your money
If you hold David Jones gift cards or credit notes, consider using them sooner rather than later. Shoppers with layby or pending orders should keep receipts, and landlords and suppliers will be watching the Christmas trading closely.
Source: SMH Business