David Jones suppliers say store closures could be good news
Some suppliers think a streamlined David Jones could be good news for their sales if it encourages more shoppers into fewer, higher-performing stores.
David Jones, the 188-year-old department store, is set to close 19 of its 38 stores, with suppliers expressing mixed feelings about the decision. The receivers appointed by the company announced the closure, which is expected to continue through the peak seasonal period. While some suppliers are concerned about the loss of business, others see the closures as an opportunity for a streamlined operation that could boost sales.
Lord and Lion owner Eresha De Zoysa believes the closures will negatively impact her brand, as the stores provided access to communities they could not otherwise reach. McGrath Nicol has been appointed as the administrator for David Jones, while FTI Consulting is working with the company's biggest lender, Hilco. Suppliers have been asked to continue supplying the stores despite unpaid debts, with some hoping for a restructured deal.
The decision to close stores is seen as a necessary step for the business to become financially sustainable in the future.
Written by urgent.news from ABC News AU's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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