Department store David Jones and its owner, Anchorage Capital Partners, are remaining silent on multiple reports that it is closing down a significant percentage of its stores.
When contacted by Ragtrader, the company declined to comment on the store closure reports, which indicate that up to 26 of David Jones’ 38 operating stores are tipped to close. This comes after the department store failed to submit its FY26 annual report to ASIC before the October 30 deadline.
The Australian Financial Review reported that five Westfield sites, considered loss-making, are in the firing line. This includes Carousel in Perth, Parramatta and Hornsby in Sydney, Woden in Canberra and Southland in Melbourne.
It is understood that David Jones continues to hold discussions with landlords, with an earlier report by the AFR indicating that David Jones is offering its major landlords a stake in the business in exchange for allowing the company access to about $70 million held in rental bonds. This includes asking landlord approval to close at least half its stores.
There are 17 David Jones stores across the Westfield portfolio, managed by Scentre Group. Scentre, which reports on a calendar year, has yet to release its September quarter trading update. Its latest data showed department store sales across Westfield centres fell 3 per cent in the three months to June 30, reversing a 3.3 per cent lift in the March quarter. Scentre has also downsized David Jones at three of its Westfield destinations to make way for other retailers.
Vicinity Centres, which manages Chatswood Chase, Chadstone and Emporium Melbourne, reported a 6.5 per cent drop in department store sales in the first quarter of FY27. It marks the fourth consecutive quarterly decline for the category across the Vicinity portfolio, following falls of 0.2 per cent, 3.3 per cent and 5.4 per cent in the previous three quarters. Department stores make up about 3 per cent of Vicinity’s total MAT sales.
Stockland, which reports department stores and discount department stores as a single category, recorded MAT growth of just 0.3 per cent across the combined category in its latest trading update, reaching $608 million. It was the slowest growth of any store type across Stockland’s town centres, where total comparable MAT sales grew 3.5 per cent. There is believed to be just one David Jones store in Stockland’s portfolio.
The latest news on David Jones comes after the department store reportedly breached a covenant in the original facility deal with Hilco in a loan of $230 million.
Hilco confirmed with Ragtrader last week that it had funded above the agreed facility to help David Jones increase its stock holding ahead of peak, with funding valued at $10 million. The firm added that it remains supportive of the business, adding that any inference otherwise is false.
Meanwhile, Anchorage Capital Partners – which bought the department store from Woolworths Holdings Limited, South Africa for $100 million in December 2023 – also continues to back the business.
A spokesperson for ACP told Ragtrader last week that the firm continues to support David Jones through a "prolonged period of weak consumer confidence and significant structural change across the department store sector", and has committed "substantial capital and supporting investment in the business’ transformation. Since being snapped up in late 2023, ACP injected $250 million in capital to help upgrade David Jones' touchpoints.
All this scrutiny comes amid a tumultuous 2026, with the department store fielding issues around delayed supplier payments earlier this year, with multiple reports indicating some suppliers are still seeing delays.
That comes off the back of prominent losses recorded in its FY24 and FY25 reports, with these losses deepening to $95 million in FY25 alongside an 8.7 per cent slip in total sales to $2 billion.
A David Jones spokesperson responded to earlier reports, saying it does not comment on speculation.
“CEO Erica Berchtold’s priority is to accelerate the execution of the business’s INSPIRE30 strategy and is in advanced discussions with key stakeholders about how David Jones is adapting to the ever-changing retailing landscape,” the spokesperson said.
“This includes a review of the portfolio of stores across Australia and the trading terms with suppliers and brand partners."