Reuters
[Photo Credit: Reuters]
Australia’s 188-year-old department store chain, David Jones, was placed into voluntary administration on Thursday after negotiations with landlord Scentre Group (SCG.AX), opens new tab over outstanding rental payments broke down, media reported.
Employees were informed the retailer’s lenders had appointed McGrathNicol as administrators and FTI Consulting as receivers, the Sydney Morning Herald reported. They will run the business while it is restructured and prepared for sale.
David Jones CEO Erica Berchtold is expected to address the retailer’s roughly 6,000 employees across its 38 stores in Australia and New Zealand on Thursday morning, the report added.
David Jones and FTI Consulting did not immediately respond to requests for comment.
Founded in Sydney in 1838 by Welsh immigrant David Jones, the retailer describes itself as the world’s oldest continuously operating department store. It is one of Australia’s most recognisable retail brands and predates London’s Harrods by more than a decade.
For generations, Australian shoppers have turned to David Jones, which is owned by private equity firm Anchorage Capital Partners, for clothing and accessories for milestone occasions, from formal wear to school and graduation attire.
However, the retailer has struggled for more than a decade as the rise of online shopping and competition from fast-fashion chains have steadily eroded its traditional department store business model.
