A spokesperson for David Jones told our sister publication AdNews there is “no substance to the speculation”.
However, the company added it sees food and food services as being “important elements” of the department store's future.
The spokesperson said: "Food and food services are important elements of the existing and future David Jones and, as in all areas of our stores, we are focussed on providing our customers with a continually improving experience and product offer.
David Jones (which is owned by the South African, and entirely separate firm, Woolworths Holdings) recently appointed a new Foods general manager – Pieter De Wet – who has been driving the food side of the business in South Africa.
Woolworths Australia is believed to have put Thomas Dux up for grabs earlier this year, accompanied by a price tag between $10-$20m.
The first Dux store opened in Lane Cove in 2008 and went on to open on eight sites formerly occupied by Macro Wholefoods.
The 10-store gourmet food chain became profitable last year.
Woolworths refused to comment.
This story first appeared on our sister website adnews.com.au.