'The reports of David Jones' predicament are alarming'
The union representing David Jones workers says it is in contact with staff, as reports suggest the department store chain could shut a large share of its stores and be placed into administration.
The retailer has not confirmed how many of its 38 stores could close, and the reports differ. 7NEWS.com.au reported that David Jones is considering cutting its network to 12 stores. The Sydney Morning Herald reported that as many as half could shut, and that the company could enter administration as early as this week if it cannot secure store closures and rent concessions.
The Shop, Distributive and Allied Employees' Association (SDA) said the 2024 David Jones Enterprise Agreement covers 4,644 employees, excluding executives and warehouse staff. The company's 2025 financial report listed 5652 employees in total, according to the Herald.
"The reports of David Jones' predicament are alarming," SDA national secretary Gerard Dwyer said, adding that the union was now in contact with employees amid uncertainty.
"The SDA's priorities are ensuring as many staff as possible keep jobs and protecting and prioritising all legal and financial entitlements for affected workers in the event of any redundancies," he told 7NEWS.com.au.
Dwyer also welcomed the federal government's payday super reforms, saying they would protect affected workers from losing up to three months of superannuation.
According to the Australian Financial Review, stores at risk include Westfield Carousel in Perth, Parramatta and Hornsby in Sydney, Woden in Canberra and Southland in Melbourne. The Herald, citing sources not authorised to speak publicly, also named Sydney's Warringah and Miranda stores.
A sales clerk at Warringah Mall told the Herald that staff had not been advised of any operational changes.
Country Road Group, whose brands include Country Road, Witchery and Mimco, has also confirmed to Ragtrader that it plans to withdraw from nearly 100 of its 283 concession spaces in David Jones stores in early 2027, 7NEWS.com.au reported.
David Jones' 2025 financial report showed sales fell to $2 billion and losses rose to more than $95 million, the Herald reported. The ABC confirmed the retailer had missed the deadline to lodge its latest annual accounts with the Australian Securities and Investments Commission.
A David Jones spokesperson previously told 7NEWS.com.au that chief executive Erica Berchtold was reviewing the store portfolio and the company's trading terms with suppliers and brand partners.
Owner Anchorage Capital Partners bought the retailer from South Africa's Woolworths Holdings in 2023. A spokesperson for the firm told the ABC that David Jones was in discussions with stakeholders to put itself "on a viable financial footing."
Lender Hilco Capital has provided funding above the agreed facility so David Jones can build up stock ahead of Christmas. The ABC understands the amount is about $10 million.
"Hilco remains supportive of the business and any inference otherwise is false," a Hilco spokesperson said as quoted by ABC.
The ABC also reported that suppliers had been placed on extended payment terms, and that at least one major fashion brand had pulled stock over concerns about unpaid bills.
David Jones declined to comment to the Herald and did not respond to 7NEWS.com.au.
