David Jones collapse: Small business suppliers face uncertain future as creditors prepare for crucial November meeting

Detailed summary

Small businesses owed money by David Jones are facing an uncertain future, with some suppliers fearing they may never recover thousands of dollars following the retailer’s…

Small businesses owed money by David Jones are facing an uncertain future, with some suppliers fearing they may never recover thousands of dollars following the retailer’s collapse.

The department store giant’s move into voluntary administration has left stockists waiting for answers, with some reportedly owed money dating back to April.

WATCH THE VIDEO ABOVE: David Jones store closures leave suppliers unpaid

Small Business Association of Australia founder and chief executive Anne Nalder said suppliers would have to wait for the administration process to progress before gaining a clearer picture of their financial position.

On Sunrise on Thursday, Nalder said a creditors’ meeting was scheduled for November 17, when creditors would vote on whether to retain the current administrators.

“Once that creditors meeting is over, I think we will get a better idea of how things are travelling,” she said.

She warned suppliers were not necessarily at the front of the queue when it came to recovering money, with administrators costs among the first expenses to be recouped.

Nalder said there was little suppliers could do outside the administration process.

She said creditors would typically meet again around six weeks after the initial meeting to determine the company’s financial position.

Opening of the article, excerpted from 7NEWS. To read the rest, open the article on the publisher's site.