FTI Consulting is set to close half of David Jones’ 38-store network following its placement into voluntary administration and receivership.
In a statement, FTI said the “difficult decision” to close 19 stores aligned with previous management’s plan prior to the receiver’s appointment. The stores set to close are:
- Carousel
- Garden City
- Glen Waverley
- Green Hills
- Hay Street Mall
- Highpoint
- Hornsby
- Macarthur Square
- Macquarie Centre
- Malvern Central
- Marion
- Newmarket (Auckland, NZ)
- Parramatta
- Robina Town Centre
- Sunshine Plaza
- Warringah Mall
- West Lakes
- Woden
- Wollongong Central
“Whilst the impacts are highly regrettable, the receivers believe the steps are unavoidable if David Jones is to continue as a viable business and these measures will help give David Jones the best chance for a sustainable future,” FTI added.
No final date has been given for each closure, but they are expected to cease trading by the end of the year.
David Jones’ network was cast into doubt following its collapse on November 5. The collapse came after distressed lenders, Hilco Global, could not secure the financial viability of the Anchorage Capital-owned David Jones.
However, the receivers have reported a strong uptick in trading since news of the retailer’s demise shocked consumers. Shopper footfall has soared in many stores as people seek clearance-sale bargains. At the same time, many luxury brands have removed stock, leaving their concessions empty.
Talks with the retailer’s largest landlord, Westfield operator Scentre Group, broke down at the eleventh hour. David Jones sought to get a more favourable rental agreement for the majority of its 17 stores hosted by Scentre.
Add comment