David Jones is set to shutter half its department store network, triggering mass job losses under a sweeping restructure, according to FTI Consulting on Wednesday.
The retailer employs over 6,000 staff across 38 locations.
FTI stated that an “urgent restructure of the business” will proceed.
As part of this restructure, the receivers have started an immediate consultation process for all staff linked to 19 stores identified for closure.
In the near term, these stores will remain operational, though no final closure date is set and closures are expected by year‑end.
Under a dual mandate, the administrators have direct control of operations while McGrathNicol pursues a buyer or new capital injection.
The situation follows years of significant losses after David Jones struggled to find a profitable position in a sector disrupted by e‑commerce and independent upmarket retailers.
The chain collapsed into voluntary administration last week.
Documents released late Tuesday show that administrators reviewed the private‑equity‑backed department chain months before its administration.
Some small suppliers remain owed money for stock received in April, long before rent arrears caused David Jones to fall into administration.
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The private‑equity owner, Anchorage Capital, has long sought a streamlined version of David Jones, free from long‑term leases on underperforming sites, and is expected to submit a proposal to administrators for a re‑purchase of the 188‑year‑old chain.
Stores slated for closure include Carousel, WA; Garden City, WA; Glen Waverley, VIC; Green Hills, NSW; Hay Street Mall, WA; Highpoint, VIC; Hornsby, NSW; Macarthur Square, NSW; Macquarie Centre, NSW; Malvern Central, VIC; Marion, SA; Newmarket, NZ; Parramatta, NSW; Robina Town Centre, QLD; Sunshine Plaza, QLD; Warringah Mall, NSW; West Lakes, SA; Woden, ACT; Wollongong Central, NSW.