David Jones enters administration and receivership as Hilco moves to restructure 188-year-old retailer

David Jones Group, Australia's oldest department store chain, entered voluntary administration and receivership on 5 November 2026, following mounting financial losses, unpaid rent and unsuccessful negotiations with major landlords over the future of its 38-store network.

Jason Preston, Shaun Fraser, Jacinta Neilsen and Matthew Hutton of McGrathNicol were appointed voluntary administrators of various group entities, while Joanne Dunn, David McGrath and Christopher Hill of FTI Consulting were appointed receivers and managers by the retailer's principal secured lender, Hilco, which reportedly has hundreds of millions of dollars invested in the business.

The concurrent appointments place operational control of the retailer with FTI Consulting, which is continuing to trade the business while assessing restructuring options, including store closures and changes to its extensive property portfolio. McGrathNicol is pursuing a recapitalisation or sale of the business through the voluntary administration process.

Founded in 1838, David Jones operates 38 stores across Australia and employs approximately 6,000 people. The retailer was acquired by private equity firm Anchorage Capital Partners from South Africa's Woolworths Holdings in 2023 for approximately $100 million, but efforts to restore profitability have been unsuccessful. ASIC filings show the business recorded losses of $74 million in the 2023-24 financial year and a further $62 million in 2024-25.

The appointments followed a dispute with Scentre Group, the owner of Westfield shopping centres and one of David Jones' largest landlords. Scentre, which houses 17 David Jones stores, disclosed that the retailer had failed to pay rent for October and was in breach of its tenancy arrangements. The landlord said it had proposed a commercial arrangement that would have allowed the retailer to continue trading, but that the offer was rejected by Anchorage.

The retailer's difficulties have been compounded by declining department store sales, rising operating costs, long-term lease commitments and deteriorating supplier relationships. Several luxury brands, including Gucci, Valentino and Saint Laurent, have reportedly withdrawn merchandise from stores amid concerns about payment and the retailer's financial position.

The receivers have asked suppliers to continue providing goods and services under new trading arrangements, confirming that properly incurred post-appointment invoices will be paid in accordance with existing terms. However, amounts outstanding before 5 November remain subject to the administration process, leaving unsecured creditors facing uncertain recoveries.

The receivers attributed the retailer's difficulties to a combination of challenging trading conditions, rising costs, an outdated store footprint and supply chain pressures. The receivers are expected to assess the viability of individual locations, with underperforming suburban and regional stores particularly exposed to potential closures.

The restructuring also raises questions about the treatment of employee entitlements, supplier claims and outstanding customer gift cards. Although stores and online operations continue to trade, the extent of any creditor shortfall has not been disclosed.

McGrathNicol is expected to issue its initial circular to creditors on 10 November, ahead of the first meeting of creditors scheduled for 17 November 2026. The outcome will depend on whether the receivers and administrators can secure sufficient financial support, renegotiate the retailer's property commitments and identify a sustainable operating model or purchaser for the business.