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David Jones faces collapse after nearly 200 years

Economy & businessEconomy
Key Points
  • David Jones recorded a £39.1 million loss and failed to file accounts.
  • Two stores in New South Wales closed; supplier payment issues denied by company.
  • Expert warns of possible closure as cost-of-living crisis changes consumer behavior.

The company has closed two outlets in New South Wales earlier this year after three decades of trading. The Australian Financial Review reported that David Jones postponed payments to major suppliers including Rabanne, Jean Paul Gaultier, and Christian Louboutin. A David Jones spokesperson denied the payment postponement claims, stating all concession partner payments are up-to-date.

Retail expert Barry Urquhart warned that David Jones is 'very much on the precipice' and that closure and disposal are real possibilities, according to Daily Express - Main. He attributed the decline to shifting consumer habits due to the cost of living crisis, with consumers becoming extreme discount shoppers. Anchorage Capital Partners purchased David Jones in March 2023.

very much on the precipice

Barry Urquhart, Retail expert

Closure and disposal are very real possibilities

Barry Urquhart, Retail expert

Consumers have moved from being smart shoppers to extreme discount shoppers

Barry Urquhart, Retail expert
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