David Jones' parent company Woolworths Holdings has dismissed reports that it was in talks with investment banks to sell the department store.
In a statement to AFR, a Woolworths Holdings spokesperson said, "WHL remains focused on the operational turnaround of David Jones and ensuring that this iconic business is restored to its rightful market leadership position in Australia.
"We are not considering an exit from Australia.
"If there were any developments that warranted communication to the market, it would be done as and when required."
The comment comes after media reports this week suggested the parent company was in talks with investment banks to sell the department store, eight years after it purchased it for $2.1 billion.
However, The Australian continues to report on the potential sale, stating that sources from Goldman Sachs' said the sale had been discussed with the parent company, and that Woolworths Holdings chief executive Roy Bagattini flew to Australia and held discussions with banks in Sydney only last month.
The speculation of a sale comes after David Jones' underperformance in recent years and its struggle to solidify its leadership team, appointing five different CEOs in the space of six years.
The business also suffered a $33 million loss in 2020 thanks to the COVID-19 pandemic and most recently reported a 9.2% decline in turnover and concession sales for the first half of FY22.
However, the department store reported more positive figures at the end of FY21, recording a sales lift of 2.3% and 0.9% in comparable stores, with second half sales up by 17.1%.
As part of its transformation strategy, the department store has also been steadily decreasing its bricks-and-mortar footprint - which saw the sale of its Bourke St Menswear store for $121 million - after Woolworths Holdings appointed investment bank UBS to review its Australian businesses (DJs and Country Road Group), in a bid to reduce a $464 million debt burden.
Additionally, the retailer has been streamlining its Food offering by closing select Food Halls, and it ended the partnership it had with BP petrol stations, just two years after the program went live.
At the time of writing, there have been no official market updates released by Woolworths Holdings in relation to the sale speculation.