Iconic Australian department store David Jones is expected to appoint voluntary administrators as early as Thursday and fall into administration, according to a report.
Sources told the Australian Financial Review on Wednesday the news followed the ‘irreconcilable’ collapse of talks between the retailer and its landlords at the 11th hour.
The AFR reported it had spoken to multiple people familiar with the matter, who declined to be named due to the sensitivity of the situation.
Major landlord Scentre Group boss Elliott Rusanow said they had offered a ‘very generous’ lifeline to David Jones and its owners Anchorage Capital. However, he said the deal had been rejected.
‘The decision of what happens with David Jones is actually determined by its owner Anchorage,’ he told NewsCorp on Wednesday.
‘We have been in discussions with Anchorage, we made a very generous offer to Anchorage that would have facilitated David Jones being able to continue trading particularly through this very busy period, keep people employed, keep their doors open for their customers.
‘It seems they have rejected that offer, and therefore the decision of what happens with David Jones now sits in the hands of Anchorage.’
The group said its $45million per year gross rent charged to the store, which equates to approximately $352/sqm, was below the $942/sqm average charged to other tenants.
Iconic Australian department store David Jones is expected to appoint voluntary administrators on Thursday following a board meeting, according to a report
David Jones’ financial position has come under renewed scrutiny after the retailer recorded a $95.5million pre-tax loss for the year to June 29, 2026, as sales fell by 8.7 per cent
David Jones’ financial position has come under renewed scrutiny after the retailer recorded a $95.5million pre-tax loss for the year to June 29, 2026, as sales fell by 8.7 per cent.
On Tuesday, it was reported dozens of David Jones stores across Australia could close down, including five locations in Westfield shopping centres, as the retailer reviews its footprint.
It was understood the department store giant, which operates 38 stores across Australia and New Zealand, is seeking to reduce its store numbers to between 12 and 20.
The auditor, PwC, had yet to sign off on accounts, which were required to be lodged with the Australian Securities and Investments Commission (ASIC) by October 30, according to The Australian Financial Review.
The Daily Mail has contacted David Jones for comment. The retailer also filed its 2025 financial accounts six months late.
At the time, a David Jones spokeswoman told the Daily Mail: ‘The company is finalising its FY26 accounts and does not comment on speculation regarding potential store closures.’
The retailer last week confirmed that a review of its Australian store portfolio and trading terms with suppliers and brand partners was underway.
A spokesperson declined to comment on ‘speculation in the media’ but said chief executive Erica Berchtold’s priority was to accelerate the company’s strategy.
Marketing Focus managing director Barry Urquhart
Founded in 1838 in Sydney, the retailer is recognised as the oldest continuously operating department store in the world still trading under its original name.
South Africa’s Woolworths Holdings bought David Jones for about $2.1billion in 2014 before selling the retailer’s operating business to Anchorage Capital Partners for a reported $100million in 2023.
The review had prompted concern from Marketing Focus managing director Barry Urquhart.
‘The inevitability is we will not be seeing David Jones around in the very near future,’ Mr Urquhart told the Daily Mail last week.
He argued that the decline in the giant’s reported sale value reflected the extent of its problems, adding that the retailer had ‘been in trouble for some time’.
Mr Urquhart also identified the Covid-19 pandemic as a major turning point, with widespread closures placing significant pressure on retailers.
‘With the onset of the Covid-19 pandemic in February 2020, a lot of communities, towns, businesses closed down and therefore that had a huge impact on cash flows, debt levels,’ he said.
In January, David Jones closed its stores at Castle Towers in Sydney and Tuggerah on the NSW Central Coast.
