David Jones Administration: What It Means for Shoppers

Current Affairs

David Jones Administration: Iconic Retailer Collapses After 188 Years, Putting Stores and Thousands of Jobs in Doubt

By Miki Farmer

November 7, 2026

David Jones department store building in Adelaide, South Australia

Table of Content

The David Jones administration has brought one of Australia’s longest retail runs to a critical point, with the 188-year-old department store appointing voluntary administrators on Thursday 5 November 2026, just weeks before Christmas. Stores and online sales are still trading under the control of receivers, but the retailer’s future now depends on whether a buyer or investor can be found.

Here is what happened, which stores could close, what it means for staff, suppliers and shoppers, and what Western Australians should know.

What happened in the David Jones administration

According to ABC News, McGrath Nicol has been appointed voluntary administrator after negotiations with key landlord Westfield broke down. Separately, lender Hilco appointed FTI Consulting as receivers and managers to protect its loans. Hilco said the directors and owner Anchorage Capital Partners had been unsuccessful in their negotiations, and that it will continue to support David Jones to keep trading while it is recapitalised and new owners are found.

The dispute centred on rent. Forbes Australia reported that Scentre Group, which hosts 17 of the 38 stores, rejected a proposal to cut the store network and reposition David Jones as an upmarket retailer, and that David Jones’ board then turned down the landlord’s counteroffer. Retail Gazette reported that Scentre said rent had not been paid since the end of September.

Receiver Christopher Hill said the trading environment, rising costs, a large and outdated retail footprint and supply chain challenges all contributed. Chief executive Erica Berchtold said the company has a plan to reset the business and will work with the administrators, receivers and its secured lender.

Which stores could close

The ABC reported that David Jones is expected to cut its store numbers from the current 38 sites. Five Westfield outlets that run at a loss have been mooted to close: Carousel in Perth, Parramatta, Hornsby, Woden in Canberra and Southland in Melbourne. The list comes from speculation by analytics firm MST Marquee, and nothing has been confirmed.

In a letter to staff, FTI Consulting’s David McGrath said it is likely there will be steps to reduce the retail footprint in the near term, and that staff and unions will be consulted once decisions are made. Retail analyst Matthew Bailey of Macquarie University said outer-metropolitan stores would probably close and any remodelling would focus on upmarket offerings in affluent areas.

What it means for staff and suppliers

Staff will continue to be paid normally, according to the letter, although the receivers are reviewing unpaid entitlements. Retail Gazette reported that more than 6,000 jobs are at risk, a figure the ABC did not confirm. The Shop, Distributive and Allied Employees Association (SDA) said its focus is keeping as many people in jobs as possible and protecting the entitlements of anyone made redundant. National secretary Gerard Dwyer said the federal government’s payday super reforms would help protect workers from losing unpaid superannuation when a company collapses.

Suppliers, including fashion brands, have been left uncertain about payments and orders.

What shoppers should know

Physical and online stores are continuing to trade. The ABC has published an explainer on the outlook for shoppers, which is worth reading if you hold gift cards, have a layby or have placed an order. Some general steps may help:

Keep receipts and order confirmations.
Check David Jones’ website and administrators’ updates before relying on gift cards or credit notes.
Think about how you pay for large purchases, since some payment methods offer extra protections.
Be wary of unofficial sales claims on social media.

This is general information only, not legal or financial advice.

Why department stores are struggling

Bailey said the troubles have been a long time in the making. He argued that department stores have cut costs to compete on price, which has undermined customer service and their business model, and that a buyer would have to be willing to take on the risk in a sector that has long been in decline. Australian Chamber of Commerce and Industry chief executive Andrew McKellar said the collapse shows how desperately the country needs economic reform, and warned that rising interest rates will make life harder for retailers. As we reported, the consumer squeeze is also hitting supermarkets, with Coles shares plunging after a flat earnings warning, and The Nightly reported that homeowners faced another interest rate rise on 3 November.

What it means for Western Australia

The Carousel store at the Westfield centre in Perth is one of the five outlets mooted to close. The fate of the retailer’s other WA stores has not been reported, and no closure has been announced for any store. Retail workers and suppliers in WA will be watching the administrators’ updates closely.

What happens next

A sale or recapitalisation: Administrators will seek offers to recapitalise David Jones or sell it as a going concern.
Store decisions: The receivers will decide which stores to keep or close, and consult staff and unions.
Christmas trading: The next few weeks will show how customers and suppliers respond.
Entitlements: Receivers are reviewing unpaid staff entitlements.

For more of our coverage, see our current affairs news.

Frequently asked questions

Is David Jones closing?

Not yet. Stores and online sales are continuing to trade under the control of receivers, but some stores are expected to close and the future of the business is uncertain.

Are David Jones staff still being paid?

According to a letter to staff, they are being paid as normal, while the receivers review unpaid entitlements.

Which stores might close?

The ABC reported that five Westfield stores have been mooted to close: Carousel (Perth), Parramatta, Hornsby, Woden and Southland. These are not confirmed.