David Jones enters voluntary administration after landlord negotiations fail

The 188-year-old department store David Jones has been placed into voluntary administration and receivership. The company's board voted to appoint McGrathNicol as voluntary administrators, while lenders appointed FTI Consulting as receivers to run the business until it is restructured and sold.

The collapse followed a breakdown in negotiations with landlords, specifically Scentre Group, which operates Westfield malls. Scentre Group chief executive Elliott Rusanow stated that David Jones had not paid rent since October and was in breach. While David Jones had proposed closing nine stores and exchanging A$45 million in bank guarantees for equity, Scentre Group's counter-proposal was rejected by the David Jones board.

The retailer has faced significant financial pressure, reporting an A$95.5 million loss for the 2025 financial year. The company also missed a deadline to file its most recent financial reports with the Australian Securities and Investments Commission.

The collapse is expected to impact staff, suppliers, and gift voucher holders, with MST Marquee identifying several Australian stores as highly likely to close. The fate of the single New Zealand location in Auckland's Westfield Newmarket remains unknown.

How it developed

• Thu 5 Nov, 12:08pmThe report confirmed that the collapse was triggered by a breakdown in discussions with Scentre Group and noted that other major property groups also rejected restructuring proposals.
• Thu 5 Nov, 12:12pmThis report identified specific Australian stores likely to close and included a statement from Scentre Group's CEO regarding unpaid rent.

Where reports differ

• One report identifies the lender as Hilco Capital, while another refers to the lender as Hilo Global

Compiled from reports by RNZ, Otago Daily Times, NZ Herald and The Post.