David Jones is preparing to close as many as half of its 38 stores as the department store chain tries to reset its cost base, with thousands of jobs at risk and speculation the retailer could be placed into administration if it cannot reach a deal with landlords. The Shop, Distributive and Allied Employees' Association said it was alarmed by the company's position and stood ready to protect workers, while distressed lender Hilco Capital said it had provided funding to help the business through the Black Friday and December trading period.
The SDA, which represents thousands of David Jones employees, said its priorities were keeping as many workers employed as possible and protecting affected workers' entitlements. "The reports of David Jones' predicament are alarming," SDA national secretary Gerard Dwyer said, adding that the union would focus on "protecting and prioritising all legal and financial entitlements for affected workers in the event of any redundancies".
The union said the 2024 David Jones Enterprise Agreement covered 4,644 employees, a figure that excludes executives and warehouse staff. The company's 2025 financial report listed 5,652 employees in total, and showed sales declined to $2 billion with losses increasing to more than $95 million.
David Jones is owned by private equity group Anchorage Capital, which last week confirmed it was in "intense" discussions with landlords including Westfield owner Scentre to decide the retailer's long-term future by Christmas. Chief executive Erica Berchtold is seeking to close stores to permanently reset the chain's cost base, and the survival bid is expected to include a significant number of closures.
Suppliers have told this publication they are already restricting the financial terms of sales to David Jones because of lengthening payment terms. If the retailer enters administration, suppliers would become unsecured creditors and could lose significantly on outstanding bills.
Hilco Capital, a distressed business lender, said it had provided funding to see the chain through the Black Friday and December sales period, which traditionally delivers most of its sales for the year. "Hilco Capital has funded above the agreed facility to allow David Jones to increase stock holdings ahead of the busy Christmas trade and sales period," a Hilco spokesperson said. "Hilco remains supportive of the business, and any inference otherwise is false."
David Jones has been approached for comment.
Analysis
Why This Matters
- Thousands of retail jobs hang on whether David Jones can agree store closures and rent concessions with landlords, with the union already preparing for redundancies.
- Suppliers are shortening their terms, which could expose them to losses as unsecured creditors if the chain enters administration.
- The outcome will shape how much floor space the chain occupies in major shopping centres, with Westfield owner Scentre among the landlords in talks.
Background
David Jones is one of Australia's best-known department store chains, owned by private equity group Anchorage Capital. Department stores globally have come under sustained pressure as shoppers shift online and running large physical stores becomes more expensive. The chain's most recent financial report showed sales falling to $2 billion and losses widening beyond $95 million, and its owner has said talks with landlords will determine its long-term future by Christmas.
Key Perspectives
SDA national secretary Gerard Dwyer: called reports of the company's predicament alarming and said the union's priorities are keeping as many workers employed as possible and protecting their legal and financial entitlements if redundancies occur.
Hilco Capital spokesperson: said the lender has funded above the agreed facility to let David Jones build stock ahead of Christmas and that it remains supportive of the business.
Anchorage Capital: confirmed it is in intense discussions with landlords to decide the retailer's long-term future by Christmas.
What to Watch
- Whether David Jones and its landlords reach an agreement by Christmas, the deadline the owner has set for deciding the chain's future.
- Whether the company is placed into administration, which would determine how suppliers and staff are treated as creditors.
- Trading through Black Friday and December, the period that traditionally provides most of the chain's annual sales.
Checked
12 claims in this story checked against 1 source: 12 supported.
Show each claim
- SupportedDavid Jones is preparing to close as many as half of its stores.Sydney Morning Herald - Latest News: “as the company prepares to close as many as half of its stores.”
- SupportedThe union is alarmed about the prospect of job losses.Sydney Morning Herald - Latest News: “The union representing thousands of David Jones employees is alarmed by the department store chain’s financial troubles and stands ready to protect workers in the case of mass redundancies”
- SupportedThe SDA says it will prioritise workers’ legal and financial entitlements if redundancies occur.Sydney Morning Herald - Latest News: ““protecting and prioritising all legal and financial entitlements for affected workers in the event of any redundancies”.”
- SupportedHilco says it remains supportive of David Jones.Sydney Morning Herald - Latest News: ““Hilco remains supportive of the business, and any inference otherwise is false.””
- SupportedThousands of David Jones workers could lose their jobs.Sydney Morning Herald - Latest News: “Thousands of David Jones workers could lose their jobs amid speculation the retailer could be put into administration”
- SupportedThere is speculation David Jones could enter administration if it cannot reach a deal with landlords.Sydney Morning Herald - Latest News: “amid speculation the retailer could be put into administration as early as this week if it cannot reach an agreement to close some of its 38 stores and receive rent concessions to help it survive.”
- SupportedGerard Dwyer said, “The reports of David Jones' predicament are alarming.”Sydney Morning Herald - Latest News: ““The reports of David Jones’ predicament are alarming,” The Shop, Distributive and Allied Employees’ Association (SDA) National Secretary Gerard Dwyer, said.”
- SupportedDwyer said the union would focus on “protecting and prioritising all legal and financial entitlements for affected workers in the event of any redundancies”.Sydney Morning Herald - Latest News: “Dwyer said the union’s priorities are to ensure as many workers as possible are kept employed, and “protecting and prioritising all legal and financial entitlements for affected workers in the event of any redundancies”.”
- SupportedThe 2024 David Jones Enterprise Agreement covered 4,644 employees, excluding executives and warehouse staff.Sydney Morning Herald - Latest News: “The SDA said the 2024 David Jones Enterprise Agreement covered 4644 employees, which doesn’t include executives or warehouse staff.”
- SupportedDavid Jones’s 2025 financial report listed 5,652 employees in total.Sydney Morning Herald - Latest News: “David Jones’s 2025 financial report, which showed sales declined to $2 billion and losses increased to more than $95 million, listed 5652 employees in total.”
- SupportedThe 2025 financial report showed sales declined to $2 billion.Sydney Morning Herald - Latest News: “David Jones’s 2025 financial report, which showed sales declined to $2 billion”
- SupportedHilco said it had funded above the agreed facility to let David Jones increase stock ahead of Christmas trading and sales.Sydney Morning Herald - Latest News: ““Hilco Capital has funded above the agreed facility to allow David Jones to increase stock holdings ahead of the busy Christmas trade and sales period,” a Hilco spokesperson said.”