David Jones shuts 38 stores and 'is just days away' from plunging into administration

David Jones shuts 38 stores and 'is just days away' from plunging into administration The retail giant operates 38 stores and could be seeking to reduce that count to between just 12 and 20 amid financial woes and a £50m loss A department store founded 188 years ago is 'just days away from collapse', according to reports, with dozens of stores at risk of closing. David Jones is famous for being the world's oldest continuously operating department store still trading under its original name. The retail giant operates 38 stores across Australia and New Zealand, and could be seeking to reduce that count to between just 12 and 20 amid financial woes. David Jones is also reportedly reviewing five stores said to be operating at a loss at Westfield shopping centres ahead of the Christmas trading period. Locations that could be axed include include Carousel in Perth, Parramatta and Hornsby in Sydney, Woden in Canberra and Southland in Melbourne, reports say. In January, two stores closed including a location in Sydney. It comes as David Jones has filed concerning financial losses, with the retail giant 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 auditor, PwC, was yet to sign off on accounts, which were required to be lodged with the Australian Securities and Investments Commission (ASIC) by October 30, according to The Australian Financial Review. The retailer also filed those 2025 financial accounts six months late. The Australian Financial Review also reported that the retailer required rent assistance, which including paying zero rent during December, usually one of its busiest months. The Daily Mail has added that a company spokeswoman told the outlet on Tuesday: "The company is finalising its FY26 accounts and does not comment on speculation regarding potential store closures." This weekend, customers reported that they were unable to use their gift cards at the store causing consumer experts to urge people to spend their store credit before the financial situation worsens. 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. The retailer last week confirmed that a review of its Australian store portfolio and trading terms with suppliers and brand partners was underway. A spokesperson previously declined to comment on 'speculation in the media' but said chief executive Erica Berchtold's priority was to accelerate the company's strategy. The company said: “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." The developments have prompted concern from Marketing Focus managing director Barry Urquhart. "The inevitability is we will not be seeing David Jones around in the very near future," Mr Urquhart told the Daily Mail last week. He argued that the decline in the giant's reported sale value reflected the extent of its problems, adding that the retailer had 'been in trouble for some time'. Mr Urquhart also identified the Covid pandemic as a major turning point, with widespread closures placing significant pressure on retailers. "With the onset of the Covid-19 pandemic in February 2020, a lot of communities, towns, businesses closed down and therefore that had a huge impact on cash flows, debt levels," he said.