Half of all David Jones stores set to close as administrators wait for rescue bids

Résumé détaillé

Half of all David Jones’ stores across Australia could be shuttered and thousands of staff could lose their jobs as administrators chase a white knight to rescue the 188-year-old…

Half of all David Jones’ stores across Australia could be shuttered and thousands of staff could lose their jobs as administrators chase a white knight to rescue the 188-year-old department chain.

FTI Consulting is expected to tell suppliers later on Wednesday that 19 of the upmarket retailer’s 38 stores will be closed, according to media reports.

David Jones entered administration last Thursday after rescue talks with landlords failed. Hilco appointed FTI as receivers to run the business, while McGrathNicol seeks a buyer or fresh capital.

It was revealed that David Jones was sounding out restructuring plans nearly four months before it was handed over to administrators and receivers.

The retailer had wanted to keep 12 stores open at full rent, while seven others would remain open if offered rent relief, according to the Australian Financial Review. The other 19 stores would have closed.

Nine sites set to be part of the closure announcement are believed to be in Westfield shopping centres owned by ASX-listed Scentre, the AFR said, with others in malls owned by GPT, Stockland and Vicinity.

Separate media report suggests the collapsed retailer could be sold back to private equity firm Anchorage Capital Partners.

In bombshell revelations that came to light in documents published late on Tuesday, creditors were told a meeting was held on July 27 between administrators McGrathNicol, representatives of David Jones’ owner Anchorage Capital Partners, including David Jones group director Simon Woodhouse, and lender Hilco Capital to discuss the retailer’s financial performance and potential restructuring scenarios.

David Jones boss Erica Berchtold did not meet with McGrathNicol until October 28, when contingency planning took place.

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