The receivers of David Jones are placing replenishment orders with suppliers after reporting record trading across its stores and online in the days since their appointment.
Christopher Hill, David McGrath and Joanne Dunn of FTI Consulting were appointed receivers and managers of ACP Riley Street Midco Pty Ltd and associated companies, the parent of David Jones Pty Limited, on November 5.
In an update today, the receivers confirmed the department store remains fully operational across Australia and New Zealand, and reported that foot traffic and sales have been at record levels since their appointment.
Following that trading, the receivers are placing orders for replenishment stock in the normal course of business with suppliers that have confirmed trading agreements, with the support of Hilco.
The receivers acknowledged that a limited number of brand partners had withdrawn from some stores, but noted that engagement with David Jones’ trade partners had been very positive overall. They are working with those partners to keep leading brands available to customers.
Brands such as Saint Laurent and Valentino have pulled stock from stores since the appointment of receivers.
Promotional activity in store and online will be reviewed over the coming weeks in the lead-up to Black Friday, which the receivers noted is consistent with any trading period.
Regarding footprint, the receivers said there is no update to share. This comes despite many media reports indicating that around half of the footprint is tipped to close, with five already named.
“We continue to review the operations in the context of the plan the Company was working towards prior to our appointment,” the receivers shared.
When decisions are made, the receivers said that David Jones will communicate these first to staff and other stakeholders who may be impacted.
The receivers also noted that any changes to customer arrangements will be communicated directly, with terms and conditions updated to match. Customers remain protected under Australian Consumer Law, with David Jones offering 14-day exchanges on change-of-mind purchases.
The latest update comes amid reports that David Jones owes $100 million in unpaid invoices, alongside $80 million to its owner, Anchorage Capital Partners, and $140 million to its secured lender Hilco Capital. The Australian Financial Review reported this over the weekend, adding that this came from documents prepared by David Jones and its owner, which were circulated to landlords.
Among these, various media reports claim buyers are circulating the business. Ragtrader has reached out to the administrators at McGrathNicol for comment.