David Jones has terminated the search for a new chief executive.
The department store has announced Paul Zahra will be continuing in his current role as CEO and managing director.
David Jones chairman Gordon Cairns praised Zahra's handling of recent turmoil at the company.
“Importantly Paul has conducted himself in a truly professional and gracious manner over the past six months throughout what has been an unsettling time for the company and the board.
"He has taken a 'business as usual' approach, remaining one hundred percent dedicated and focused on his role, which is evidenced by the strong 2Q14 sales results reported by the company in February.
"What has impressed me most about Paul is his commitment to acting in the best interests of the company and shareholders throughout this period and for that the Board and I are truly grateful to him.
“Paul has the full and unwavering support of the Board and shareholders and we believe that David Jones is very fortunate to have secured his commitment to continuing as CEO and managing director of the Company,” Cairns said.
Zahra said his loyalty had "intensified" in recent months.
“I am very grateful and humbled by the support I have received from our new Chairman, the Board, our shareholders and staff, and I feel a renewed sense of purpose and commitment to the business.
"I am passionate about David Jones and its future and look forward to working closely with the Board to create stability in the business and to deliver shareholder value."