David Jones, which is 188 years old, employs more than 6000 staff across its 38 stores in Australia and New Zealand. The business has one location in New Zealand at Auckland’s Westfield Newmarket.
The collapse of the retailer was initiated after a breakdown in discussions between the company and landlords, specifically Scentre Group, which operates Westfield malls in Australia and New Zealand, despite reports that it had offered a lifeline.
David Jones had been hoping to restructure into an upmarket retailer with 12 key stores. However, landlord sources told the Australian that the company’s proposals were rejected by at least two major property groups aside from Scentre.
In a statement, FTI Consulting said Christopher Hill, David McGrath and Joanne Dunn had been appointed receivers and managers of ACP Riley Street Midco Pty and associated companies by the firms’ secured lender Hilo Global after the appointment of voluntary administrators.
ACP Riley Street Midco Pty is the parent company of David Jones Pty.
Meanwhile, Jason Preston, Shaun Fraser, Jacinta Neilsen and Matthew Hutton of McGrathNicol were appointed as voluntary administrators by the companies’ directors.
“David Jones’ physical and online stores are continuing to trade under the control of the receivers, whilst they review the current operations.”
David Jones chief executive Erica Berchtold was also quoted in the statement saying the retailer was an iconic company.
“I thank customers, our team members and our partners for their continued support for David Jones through this period.
“We have a well-developed plan on how to reset the business for the future and will be working with the administrators, the receivers and our secured lender as we continue to pursue that reset of the business.”
FTI Consulting’s Hill said the retail trading environment, rising costs, a significant and outdated retail footprint, and supply chain challenges had led the company to this point.
“Voluntary administration and receivership provides breathing space and an opportunity to restructure the business. We will manage this process carefully, mindful of the impact on some stakeholders but also recognising the need for difficult decisions.”
McGrathNicol will undertake a transaction process seeking offers for a recapitalisation of the business or a sale as a going concern.
The New Zealand business David Jones (NZ) Pty is included in the voluntary administration and receivership of the group.
David McGrath and Joseph Hansell of FTI Consulting have been appointed receivers of the New Zealand business, and Andrew Grenfell and Kare Johnstone of McGrathNicol have been appointed voluntary administrators.
Financial difficulty
David Jones posted a $4.4 million loss in its 2025 New Zealand full-year financial results, with an impairment to its property leases responsible for most of the loss.
For the year ended June 28, 2025, David Jones NZ reported total revenue of $26m, down 11.3% from $29.3m in 2024.
Without the impairment, the business would have reported a loss of $231,000, an improvement on the $856,000 loss the year prior.
Meanwhile, the Australian parent company posted a pre-tax loss of A$95.5m ($119.7m) for the June 2025 full-year period.
Tom Raynel is a multimedia business journalist for the Herald, covering small business, retail and tourism.