Department store founded 188 years ago on brink of collapse after more than £50m loss

Department store founded 188 years ago on brink of collapse after more than £50m loss The retail giant is famous for being the world's oldest continuously operating department store still trading under its original name - however reports suggest the company is in serious financial difficulty A department store founded 188 years ago is on the brink of collapse after losing more than £50m, with customers complaining of being unable to redeem their gift cards. Australia's oldest department store, which began trading in 1838, is battling serious financial struggles and could enter voluntary administration, multiple news outlets have reported. Consumer experts are now warning shoppers to spend their gift cards as soon as possible after some were unable to redeem their store credit over the weekend, reports continue. David Jones is said to have recorded a pre-tax loss of $95.45 million (around £50.1m) for the 2025 financial year, prompting an urgent restructure, following a $74.12 million (around £39m) pre-tax loss in the period prior. The figures came to light when the retailer filed its delayed annual accounts with the Australian Securities and Investments Commission (ASIC). David Jones managed to secure $10m in emergency funding to stock up ahead of the crucial 2026 festive shopping season, but supplier confidence has been shaken with brands including Gucci pulling out amid the surrounding uncertainty. The last-minute funding was secured by UK-based restructuring specialist Hilco Global, brought in after David Jones missed payments to several key concession holders. Nine.com.au has reported that this was due a global outage affecting GiveX, the third-party platform that supports David Jones Gift card services, and it has since been restored, although maintenance is still ongoing in some regions. In response to the Australian news outlet's inquiry regarding the future of the business in Australia, a David Jones spokesperson said: “David Jones does not comment on speculation in the media. “CEO Erica Berchtold’s priority is to accelerate the execution of the business’s INSPIRE30 strategy and is in advanced discussions with key stakeholders about how David Jones is adapting to the ever-changing retailing landscape. “This includes a review of the portfolio of stores across Australia and the trading terms with suppliers and brand partners.” Eden Radford from consumer advocacy group Canstar advised David Jones customers to check whether their gift cards remain valid and to “put them to some good use”, following reports of redemption difficulties. She told 9News unused gift card holders risk ending up at the end of a long list of creditors if a business becomes insolvent, noting: “Frankly and in reality most of the time that often means you don’t get what you paid for.” The department store operates 38 outlets across Australia and New Zealand and is understood to employ more than 5,000 workers, reports continue. The emergency funding bought time for owner Anchorage Capital Partners and Chief Executive Erica Berchtold to negotiate with landlords to dramatically downsize the retailer’s 38-store footprint, potentially cutting it by half to stabilise operating overheads. Industry analysts expect that if David Jones is to survive, it will need to continue shrinking its physical footprint in favour of driving digital sales. Store closures have been suggested to save the retail empire from extinction, 7News reports, while The Australian writes that the chain is looking for a financial rescuer. In January, two stores closed including a location in Sydney. Retail expert Gary Mortimer told 9News: “I think what we will see is a smaller footprint of David Jones stores,” while reassuring shoppers that he does not believe the chain will suffer an outright “collapse.” [Image text:] VID JONES ARANCE ON DAVID JONES