David Jones faces store closures and possible mass redundancies as owner seeks rent deals

The union representing David Jones employees says thousands of jobs could be lost if the retailer proceeds with plans to close up to half of its stores and cannot secure rent concessions.

David Jones runs 38 stores nationally. Its 2025 financial report showed sales fell to $2 billion and losses widened to more than $95 million, with the company listing 5,652 employees in total.

"The reports of David Jones’ predicament are alarming," SDA National Secretary Gerard Dwyer said.

The Shop, Distributive and Allied Employees’ Association said the 2024 David Jones enterprise agreement covered 4,644 workers, excluding executives and some warehouse staff, and that its priority is to keep as many people employed as possible while protecting legal and financial entitlements should redundancies occur.

Owner Anchorage Capital has confirmed it is holding “intense” discussions with major landlords, including Scentre Group, to determine the retailer’s long-term path before Christmas. Industry sources expect any survival plan to include a significant program of store closures.

Suppliers have told the publication they are tightening payment terms as they deal with longer supplier payment schedules from David Jones. If the business enters administration, suppliers would become unsecured creditors and could face significant losses on unpaid invoices.

Distressed debt firm Hilco Capital has stepped in with extra funding to bolster stock ahead of the busiest trading weeks.

"Hilco Capital has funded above the agreed facility to allow David Jones to increase stock holdings ahead of the busy Christmas trade and sales period," a Hilco spokesperson said. "Hilco remains supportive of the business, and any inference otherwise is false."

Company sources declined to comment on the wider survival plans, but told reporters the retailer currently has normal operations.

"[David Jones] continues to operate as usual, and there’s no change to our day-to-day operations," the sources said.

Consumer group Choice has urged shoppers to redeem David Jones gift cards while they still can, but the retailer’s sources stressed that gift cards and rewards remain currently redeemable.

With administration a potential outcome as soon as this week if no deals are struck, the unfolding negotiations will affect staff, suppliers and landlords as well as shoppers relying on gift cards and afterpay arrangements during the Black Friday and December sales period.