Why David Jones store closures are trending in Australia today
David Jones is closing 19 stores across Australia and New Zealand and has entered voluntary administration, putting more than 6,000 jobs at risk. The move has raised questions about how large suburban shopping centres will survive without a major anchor tenant.
What happened
- Earlier
David Jones announced it will close 19 stores, mainly in outer suburban areas, and entered voluntary administration [1]
- Earlier
FTI Consulting began an urgent restructure and consultation for staff of the 19 stores, with closures expected by the end of the year [2]
- Earlier
Scentre Group said David Jones had not paid rent for October, breaching its tenancy agreement [3]
What you need to know
David Jones employs over 6,000 staff across 38 stores.
19 stores are closing, mostly in outer suburban locations.
Scentre Group expects short‑term rent impact but anticipates stronger centres in 18 months.
The closures reflect a shift from anchor‑tenant models to mixed‑use precincts.
The exact dates when the 19 stores will close have not been set. It is also unclear whether a buyer or new capital will be secured for David Jones.
Background
David Jones, Australia’s oldest department store chain founded 188 years ago, has been loss‑making for years due to online competition and an outdated store footprint. It employs about 6,000 staff across 38 physical stores, with 17 located in Westfield shopping centres.
The recent announcement of closing 19 stores, mainly in outer suburban areas, and the company’s entry into voluntary administration have raised concerns about the sustainability of large suburban shopping centres that rely on anchor tenants.
Questions people ask
Why is David Jones closing so many stores?
The company entered voluntary administration after years of losses, and the receivers said the store portfolio no longer fits a financially sustainable model.
Will the closures affect Westfield shopping centres?
Scentre Group said the short‑term rent impact is expected but believes the centres will become stronger in the medium term.
What happens to the employees of the closing stores?
FTI Consulting has started an immediate consultation process for staff in the 19 stores and will assist with sales and promotional activity before the closures.
Where this came from
[2] theguardian.com
David Jones to close half its stores, triggering mass job losses in ‘urgent restructure’
Preview image from theguardian.com
[3] bbc.com
Major Australian retailer David Jones folds after 188 years in operation
Preview image from bbc.com
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