David Jones enters administration and receivership

Retailer David Jones Group has been placed into voluntary administration and receivership following months of turmoil in the business. 

McGrathNicol was appointed voluntary administrators yesterday, according to its website, while FTI Consulting is the receiver. 

The Australian Financial Review (AFR) reported that David Jones chief executive Erica Berchtold and key figures from its private equity owner, Anchorage Capital Partners, would address staff on Thursday morning (local time). 

The Herald understands NZ store managers were on the call this morning about its future. 

Anchorage Capital Partners has owned David Jones since 2023, buying it for less than A$100 million from South Africa’s Woolworths. 

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 just 12 key stores, however landlord sources told The Australian that the company’s proposals were roundly rejected by at least two major property groups aside from Scentre. 

The company’s board voted to appoint voluntary administrators from McGrathNicol, who have been approached for comment. 

Voluntary administration involves an external administrator being put in charge to review and rearrange the business and its financial affairs. 

If the company cannot be saved, the administrator’s focus is to provide creditors and shareholders with a better financial return than might have been achieved were the company put straight into liquidation. 

The AFR reported that Hilo Global, the British distressed lending specialist which has been David Jones’ main financier for the last five months, had appointed FTI Consulting as receiver. 

At publication, David Jones had not updated its website to reflect its placement into administration, nor had its New Zealand Companies Office listing changed its status. 

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.