David Jones’ administrators have revealed they reviewed the department store’s finances six months ago and discussed a potential restructuring three months before it fell into administration, raising questions about the retailer’s decision to continue buying stock while falling behind on payments to suppliers.
McGrathNicol, the administrator, said it was engaged by the lawyers for David Jones’ owners, Anchorage Capital, as early as April 2026 to analyse some of the group’s financial information.
By July, group director Simon Woodhouse and the company’s biggest lender, Hilco, met McGrathNicol to discuss David Jones’ financial performance and “potential restructuring”. Woodhouse left when that topic was raised and no working group was formed, the administrators said.
McGrathNicol said it did not discuss David Jones’ financial position again until 22 October, when Woodhouse asked for help planning for a potential voluntary administration. Five meetings followed in the next fortnight, culminating in a series of briefings last Wednesday, the day before the administration was announced.
The administrators were paid $1 million upfront to run the process and expect to access another $3 million to $4 million in funding.
David Jones, the 188-year-old department store chain, collapsed into administration last Thursday, putting about 6000 jobs at risk. The retailer operates 38 stores and owes money to hundreds of suppliers.
Among those owed money is Ben Nothling, a sixth-generation descendant of founder David Jones, whose shoe business Holster is owed $130,000 by the retailer. Nothling said David Jones had always paid on time until a few months ago, when payments for two shipments delivered in June and July were not made.
“They came back with a weird email saying, ‘We need to check. We’ll come back to you,’” Nothling said. Another shipment worth $118,000 was put on hold.
“It’s a lot of money to lose. It makes you quite stressed and angry,” he said. “You’re just upset about the way the company was run. Suppliers all got treated not in a good way. You feel sorry for the staff. It’s just a huge ripple effect.”
Nothling’s father, Martin, was saddened by the collapse. “He actually couldn’t believe it,” Nothling said.
The first creditors’ meeting has been set for 17 November. McGrathNicol said it expects to apply to delay the second meeting until early April 2027 to allow more time to sell the business or raise funds.
FTI Consulting, which is running David Jones’ day-to-day operations during the administration, said the company remained fully operational.
Analysis
Why This Matters
- The collapse of a 188-year-old Australian retail icon puts about 6000 jobs at risk and leaves hundreds of suppliers unpaid.
- The administrator's timeline raises concerns about the chain's conduct in the months before administration, including continuing to buy stock while falling behind on payments.
- The first creditors' meeting on 17 November will be a key moment for unpaid suppliers, gift card holders and staff.
Background
David Jones was founded in 1838 by Welsh entrepreneur David Jones and grew into Australia's oldest department store chain. After years under South African retailer Woolworths Holdings (2014–2022), it was bought by US private equity firm Anchorage Capital. The chain has 38 stores and about 6000 staff. It entered voluntary administration on 5 November 2026.
What to Watch
- The first creditors' meeting on 17 November, where creditors will vote on the administration's direction.
- Whether McGrathNicol secures an extension to April 2027 for a second meeting, potentially allowing a sale of the business.
- Which stores FTI Consulting recommends closing as part of a potential restructure.
Checked
12 claims in this story checked against 2 sources: 12 supported.
Show each claim
- SupportedAdministrators reviewed David Jones’ finances six months before it fell into administration.World news | The Guardian: “David Jones’s administrators have revealed they reviewed its finances six months ago and discussed restructuring the retailer three months before it fell into administration.”
- SupportedAdministrators discussed potential restructuring three months before David Jones went into administration.World news | The Guardian: “David Jones’s administrators have revealed they reviewed its finances six months ago and discussed restructuring the retailer three months before it fell into administration.”
- SupportedThe timeline raised questions about David Jones continuing to buy stock while falling behind on supplier payments.World news | The Guardian: “The new timeline raises questions over the department store group’s decision to keep buying new products and fall months behind in payments to some brands before it revealed last Thursday it could not pay its debts.”
- SupportedIn July, Simon Woodhouse and David Jones’ biggest lender, Hilco, met McGrathNicol to discuss the retailer’s performance and potential restructuring.World news | The Guardian: “By July, David Jones’s group director, Simon Woodhouse, and its biggest lender, Hilco, met McGrathNicol to discuss David Jones’s financial performance, “potential restructuring””
- SupportedWoodhouse left when potential restructuring was discussed, and no working group was formed.World news | The Guardian: “But the administrators said Woodhouse left the meeting when the “potential restructuring” was discussed and no working group was formed.”
- SupportedMcGrathNicol said it did not discuss David Jones’ financial position again until 22 October, when Woodhouse asked for help planning for potential voluntary administration.World news | The Guardian: “McGrathNicol said it did not discuss David Jones’s dire financial position again until 22 October, when Woodhouse asked them to help plan a for potential voluntary administration.”
- SupportedFive meetings followed in the next fortnight, before briefings last Wednesday, the day before administration was announced.World news | The Guardian: “It said Woodhouse and others held another five meetings in the following fortnight before a series of briefings last Wednesday, the day before the administration was announced”
- SupportedMcGrathNicol was paid $1 million upfront and expected to access another $3 million to $4 million in funding.World news | The Guardian: “McGrathNicol said David Jones Group paid it $1m upfront that day to run the administration. It told creditors it expected to access another $3m to $4m of funding.”
- SupportedAbout 6,000 jobs were at risk.Brisbane Times - Latest News: “About 6000 jobs are on the line.”
- SupportedBen Nothling’s shoe business, Holster, was owed $130,000 by David Jones.Brisbane Times - Latest News: “Nothling’s shoe business is owed $130,000 by David Jones”
- SupportedNothling said: “They came back with a weird email saying, ‘We need to check. We’ll come back to you,’”Brisbane Times - Latest News: ““They came back with a weird email saying, ‘We need to check. We’ll come back to you.’ Soon as they were overdue, we froze their account.””
- SupportedNothling said: “You’re just upset about the way the company was run. Suppliers all got treated not in a good way. You feel sorry for the staff. It’s just a huge ripple effect.”Brisbane Times - Latest News: ““You’re just upset about the way the company was run,” said Nothling. “Suppliers all got treated not in a good way. You feel sorry for the staff. It’s just a huge ripple effect.””