David Jones faces administration after rent talks collapse

Summarised from 3 outlets · 4 reports · Updated 4 Nov, 08:27 · Archive

Australian department store David Jones is expected to fall into administration after failed negotiations with its main landlord Scentre Group.

David Jones, founded in 1838 and recognised as the world's oldest continuously operating department store still trading under its original name, is expected to appoint voluntary administrators as early as Thursday, according to reports.

The collapse follows failed 11th-hour negotiations between the retailer's owner, private equity firm Anchorage Capital Partners, and its primary landlord Scentre Group, which owns Westfield shopping centres. Scentre Group's chief executive Elliott Rusanow said the company had made a 'very generous' offer to facilitate David Jones continuing to trade, particularly through the busy Christmas period, but that Anchorage Capital had rejected it. He noted that David Jones has not paid rent since September and is in breach of its lease obligations.

The retailer has struggled with years of steep losses and weak consumer spending. It recorded a pre-tax loss of approximately £50m for the 2025 financial year, following a loss of around £39m in the prior period. David Jones also filed its 2025 financial accounts six months late and has not had them signed off by auditor PwC.

The store is reviewing its national footprint, with five locations at Westfield centres reportedly operating at a loss and potentially facing closure. These include stores in Carousel (Perth), Parramatta and Hornsby (Sydney), Woden (Canberra) and Southland (Melbourne). The retailer has also been seeking rent assistance, including paying zero rent during December, typically one of its busiest trading months.

Administrators would likely seek to keep stores trading with minimal disruption through Black Friday and Christmas to secure vital cash during these peak shopping periods. A David Jones spokesperson said on Wednesday that chief executive Erica Berchtold was in advanced discussions with key stakeholders regarding a review of the store portfolio and trading terms with suppliers and brand partners.

How it is being reported

• David Jones expected to fall into administration after failed 11th hour talks with biggest landlordFuture of 188-year-old department store hangs in balance after no agreement was struck with Westfield owner Scentre Group Get our breaking news email , free app or daily news podcast David Jones is poised to fall into administration after 11th-hour talks between its private equity owner and primary landlord broke down, putting the future of the 188-year-old upmarket department store chain at risk. The upheaval follows years of steep losses, weak consumer spending and a string of underperforming stores that left the heritage retailer defaulting on its rent. Continue reading...Guardian World · 4 Nov, 06:08
• David Jones on the brink of administration within hours - with dozens of stores to be closed across AustraliaFounded in 1838, the Aussie retailer is recognised as the oldest continuously operating department store in the world still trading under its original name.Daily Mail · 4 Nov, 02:07
• David Jones shuts 38 stores and 'is just days away' from plunging into administrationThe retail giant operates 38 stores and could be seeking to reduce that count to between just 12 and 20 amid financial woes and a £50m lossThe Mirror · 3 Nov, 06:52
• David Jones to shut dozens of loss-making stores across Australia - as expert warns it has been in trouble for 'some time'A retail expert said it is inevitable that David Jones will not be around in the 'very near future'.Daily Mail · 2 Nov, 22:21

In this story: David Jones · Scentre Group · Anchorage Capital Partners · Elliott Rusanow · Erica Berchtold · Australia

This summary was written by AI from the headlines and standfirsts above, and states as fact only what at least two outlets report. How we use AI · Report a problem · Corrections log