David Jones Collapses Into Administration After 188 Years
The Facts
- David Jones, Australia's 188-year-old department store chain, entered voluntary administration on Thursday, with McGrathNicol appointed administrators and FTI Consulting's Christopher Hill, David McGrath and Joanne Dunn named as receivers.
- The retailer employs roughly 6,000 staff across 38 stores, which continue to trade. CEO Erica Berchtold said David Jones has a "well-developed plan" to reset the business and would work with administrators, receivers and its secured lender.
- In a letter obtained by ABC, McGrath told employees the retail footprint would likely shrink in the near term, with staff and unions to be consulted, after negotiations with landlords over a proposal to downsize the business and close stores stalled this week.
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The Spin
Pro-government narrative
The workers who gave decades of their lives to David Jones must be treated with the respect, certainty and fairness they deserve. As the holidays approach, they cannot be left in the lurch, even if shopping habits have changed and traditional department stores feel the pinch. Consequently, the authorities will do everything they can to support staff through this difficult time.
Government-critical narrative
David Jones, a business that survived two world wars and the Great Depression, could not survive the current Labor government. Rising taxes, energy bills, red tape and interest rates made the company unsustainable, putting thousands of jobs at risk. Prime Minister Anthony Albanese and Treasurer Jim Chalmers are responsible for this disaster, which can only be fixed when the government decides to reward, not punish, private enterprise.
