David Jones placed under administration in Australia
By the AFREEQUE newsroom, based on Bénin Web TV
David Jones, Australia’s oldest department store chain, has been placed under voluntary administration, while its 38 stores and website remain open. The procedure affects around 6,000 employees and is intended to enable restructuring amid unpaid rents, rising costs and declining in-store shopping, according to Bénin Web TV.
David Jones, Australia’s oldest department store chain, was placed under voluntary administration on Thursday 5 November. McGrathNicol was appointed administrator, while FTI Consulting examines the retailer’s operations, according to Bénin Web TV.
The procedure affects around 6,000 employees, but the 38 stores and online shop remain open during the review. FTI Consulting said the step should give David Jones time to restructure, according to Bénin Web TV.
A few hours before the board’s decision, Scentre, the owner of Westfield shopping centres, said that David Jones had not paid its October rent. Seventeen of the retailer’s stores are located in Westfield centres, according to Bénin Web TV.
The 188-year-old company is facing the growth of online shopping, rising costs, a large and ageing store network and supply difficulties, said Christopher Hill of FTI Consulting, quoted by Bénin Web TV.
