The end of David Jones in NZ? Only local store earmarked for closure

New Zealand’s only David Jones store, at Westfield Newmarket, is earmarked to close by the end of 2026 as part of a major restructure of the department store chain.

Receivers have begun consulting staff over the proposed closure of 19 stores across Australia and New Zealand.

David Jones was placed into voluntary administration and receivership last week after a breakdown in discussions between the company and landlords.

The 188-year-old business employs more than 6000 staff across its 38 stores in Australia and New Zealand, and has had its Newmarket location since 2019.

Receivers Christopher Hill, David McGrath and Joanne Dunn of FTI Consulting confirmed in a statement they had made the “difficult decision to proceed with an urgent restructure of the business”.

“As part of this restructure, the receivers have commenced an immediate consultation process for all staff associated with 19 stores that have been identified for closure,” the statement said.

“For the immediate term these stores will continue trading and while there is no final date for the closures, we anticipate they will cease trading by the end of the year.”

David Jones staff were informed today, with the consultation period continuing over the next seven days.

The receivers said they recognised the restructure would have a “material impact” on many members of its team, and committed to treating all employees with fairness and respect throughout the process.

“Whilst the impacts are highly regrettable, the Receivers believe the steps are unavoidable if David Jones is to continue as a viable business and these measures will help give David Jones the best chance for a sustainable future.

“People are at the heart of David Jones and the team puts customers first, every day. The receivers ask that respect be shown for the team members, particularly those affected by today’s announcement.”

David Jones Westfield Newmarket floor covers multiple levels. New Zealand Herald photo

How did we get here

David Jones entered voluntary administration and receivership after restructuring talks with major landlords broke down, against a backdrop of rising costs, supply-chain challenges and what the receivers described as a significant and outdated retail footprint.

David Jones had proposed retaining 12 stores on existing rental terms, with another seven continuing if landlords agreed to concessions. However, landlord sources told the Australian that the proposal was rejected by at least two major property groups aside from Scentre.

David Jones chief executive Erica Berchtold said in the initial announcement that 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,” Berchtold said.

“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.”