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David Jones collapses into voluntary administration after talks with its biggest landlord fail

By ChordNews · First written (updated )

David Jones on brink of collapse and behind on rent to Westfield
Image: abc.net.au
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Summary

Australia's 188-year-old upmarket department store David Jones has collapsed into voluntary administration, putting thousands of jobs at risk, according to The Guardian. The Guardian reports that 11th-hour talks between the store's private equity owner and its primary landlord, Westfield owner Scentre Group, broke down, and that store closures are expected, with outer suburban and regional locations most vulnerable, and that warnings say difficult decisions lie ahead. ABC reports that one of David Jones's biggest landlords says the store is in breach of its rental agreements and has not paid rent since September. The upheaval follows years of steep losses, weak consumer spending and a string of underperforming stores that left the retailer behind on rent.

Later: Brands asked to keep supplying David Jones despite unpaid debts · David Jones's administrators say its finances were reviewed and restructuring discussed months before administration · David Jones to close 19 of its 38 stores under receiver's restructure

Timeline

  1. ABC

    Source ↗

    ABC reports that one of David Jones's biggest landlords says the department store is in breach of its rental agreements and has not paid rent since September.

  2. The Guardian

    Source ↗

    The Guardian reports that David Jones was poised to fall into administration after 11th-hour talks with its biggest landlord, Westfield owner Scentre Group, broke down, putting the future of the 188-year-old chain at risk.

  3. The Guardian

    Source ↗

    The Guardian reports that David Jones has collapsed into voluntary administration, with thousands of jobs at risk and store closures expected, especially at outer suburban and regional locations.

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