Australia’s oldest department store, David Jones, folds after 188 years

David Jones, Australia’s oldest department store chain, has entered voluntary administration, signaling potential job losses for thousands of employees. The 188-year-old retailer, locally known as DJs, has faced financial challenges as consumers shift towards online shopping. Both David Jones's physical and digital stores will remain operational while receivers FTI Consulting assesses the company, according to voluntary administrators McGrathNicol.

CEO Erica Berthold emphasized the brand's well-developed plan to "reset the business for the future" and thanked customers, staff, and partners for their support. David Jones employs around 6,000 people and has 38 physical stores, with 17 located within Westfield shopping centers. The retailer was reportedly in breach of its tenancy agreement with Scentre, the owner of Westfield, as it failed to pay rent for October.

Christopher Hill from receivers FTI Consulting explained that appointing administrators and receivers would provide David Jones with "breathing space" to restructure the business. The collapse of David Jones marked the "death knell" for the traditional department store format, according to marketing professor Jana Bowden. The iconic retailer, recognized for its black-and-white houndstooth design, once embodied luxury and glamour shopping in Australia.

The flagship city stores in Sydney and Melbourne were considered a family ritual, especially for witnessing festive Christmas window displays. However, recent years saw the brand lose its allure, with suburban stores deemed mundane and lacking excitement. A notable historical event took place during Queen Elizabeth II's first visit to Sydney in 1954, when the then-27-year-old monarch attended a banquet dinner on the seventh floor of the Elizabeth St store.