Australian department store David Jones has appointed administrators and receivers after a lengthy battle this year to rightsize the business.
Christopher Hill, David McGrath and Joanne Dunn of FTI Consulting have been appointed as receivers and managers of ACP Riley Street Midco Pty Ltd and its associated companies, by the companies’ secured lender following the appointment of voluntary administrators.
ACP Riley Street Midco Pty Ltd is the parent company of David Jones Pty Limited.
Jason Preston, Shaun Fraser, Jacinta Neilsen and Matthew Hutton of McGrathNicol were appointed as voluntary administrators by the directors of the companies at the same time.
David Jones’ physical and online stores are continuing to trade under the control of the receivers, whilst they review the current operations. Media reports indicate this could include the closure of up to 26 stores across the fleet.
“David Jones is an iconic company and so many Australians have stories and memories of visiting DJ’s stores and I thank customers, our team members and our partners for their continued support for David Jones through this period,” David Jones CEO Erica Berchtold said.
“We have a well-developed plan on how to reset the business for the future and will be working with the Administrators, the Receivers and our secured lender as we continue to pursue that reset of the business.”
Christopher Hill, of FTI Consulting, said he and the team understand the current retail trading environment, rising costs, a significant and outdated retail footprint, and supply chain challenges have led to this point.
“Voluntary administration and receivership provides breathing space and an opportunity to restructure the business. We will manage this process carefully, mindful of the impact on some stakeholders but also recognising the need for difficult decisions”, Hill added..
A transaction process seeking offers for a recapitalisation of the business or a sale as a going concern will commence immediately, and will be managed by the voluntary administrators, McGrathNicol.
In addition to the above Australian entities, David McGrath and Joseph Hansell of FTI Consulting have been appointed as receivers of David Jones’ New Zealand arm, while Andrew Grenfell and Kare Johnstone of McGrathNicol have been appointed voluntary administrators.
David Jones has faced a tough 2026 after two prior financial years that included significant losses at the bottom line. This included a deeper loss of $95 million in FY25 alongside an 8.7 per cent slip in total sales to $2 billion.
Through 2026, the brand has dealt with supplier payment delays, a refinancing deal of $190 million, while certain brands pull concessions.
Country Road Group plans to cut nearly 100 of its more than 280 concessions across David Jones from early 2027, covering Country Road, Witchery, Mimco, Trenery and Politix.
Accent Group stopped supplying the department store in July. Labels including Acler, Effie Kats, Significant Other and Aston Studio have moved to exclusive arrangements with Myer.
The department store is yet to share its FY26 financial report, which comes as Vicinity Centres (Chatswood Chase, Chadstone) and Scentre Group (Westfield) report struggling department store sales across their shopping centre fleet.