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

David Jones, Australia's oldest department store chain, has been placed into voluntary administration, threatening the loss of thousands of jobs. The iconic retailer, locally known as DJs, has been facing financial difficulties as shoppers increasingly shift towards online shopping. Both the company's physical and online stores will continue to operate while receivership firm FTI Consulting conducts a review of the company.

David Jones CEO Erica Berthold emphasized that the brand has a well-developed plan to "reset the business for the future." She also expressed gratitude to customers, team members, and partners for their support during this challenging period.

The department store chain has employed approximately 6,000 staff and operates 38 physical stores, including 17 in Westfield shopping centers. Just before the board voted to go into administration, the owner Scentre announced that David Jones had not paid its October rent and was therefore in breach of its tenancy agreement. Christopher Hill, from receivers FTI Consulting, explained that appointing administrators and receivers would provide the retailer with "breathing space" and a chance to restructure the business.

For many Australians, David Jones, with its distinctive black-and-white houndstooth design, symbolized luxury and glamour. The store was once considered the epitome of high-end shopping in Australia and a place where one could marvel at premium luxury labels and feel a sense of success. The flagship city stores in Sydney and Melbourne were a ritual for many Australian families, especially during festive Christmas window displays.

People would travel from far distances just to witness those windows and experience the magic. However, in recent years, the brand had lost its luster, with suburban stores becoming mundane and lacking excitement.