David Jones store closures: receivers to shut a significant share of its 38 stores

The receivers and managers, Christopher Hill, David McGrath and Joanne Dunn of FTI Consulting, plan to shut a substantial number of David Jones stores, the ABC reported shortly after 1pm AEDT on Wednesday. Employees at the stores in question were being briefed, and a formal announcement was expected later in the day. At the time of writing, neither the receivers nor the company had said which stores, or how many, will close.

Five Westfield stores that reportedly lose money have been named as likely to go: Hornsby and Parramatta in Sydney, Southland in Melbourne, Woden in Canberra and Carousel in Perth, according to the ABC. Analysts have also pointed to regional stores and sites in Western Sydney. None of these closures has been confirmed. Scentre Group, the Westfield owner, is landlord to 17 of the stores and has received no rent from the retailer since late September, AAP reported. Vicinity Centres, which hosts four stores, is owed A$2.2 million.

The chain employs about 6,000 people. In a letter released on 10 November, the receivers told staff that pay for work done during the receivership would continue, and that money owed from before their appointment would generally be paid ahead of other creditors. They said they expected asset sales to cover those entitlements in full, AAP reported. How many jobs the closures will cost is not yet known.

On 9 November the receivers said shoppers still had their rights under Australian Consumer Law and that change-of-mind exchanges were available for 14 days. They have not said how gift cards, lay-bys or returns will be handled at stores that close. McGrathNicol, the voluntary administrator since 5 November, has asked creditors to lodge proofs of debt by Monday 16 November, before the first creditors' meeting on Tuesday 17 November, the ABC reported. Expressions of interest from would-be buyers close on Friday 13 November, AAP reported.