Westfield Rent Fight Pushes David Jones Into Administration

David Jones entered voluntary administration on Thursday after rent negotiations with Westfield broke down, leaving thousands of staff waiting to learn their fate. The 188-year-old retailer’s board appointed McGrathNicol as administrator. Its stores are still trading, but the company’s future and the jobs attached to its 38 sites are uncertain.

Workers Face the First Reckoning

The Shop, Distributive and Allied (SDA) Employees Association said its immediate focus was keeping as many people in jobs as possible. National secretary Gerard Dwyer said the union was seeking to “protect and priorititise” the legal and financial entitlements of workers affected by redundancies. The union has two stated objectives: preserve jobs wherever possible and ensure workers receive all entitlements owed if positions are lost.

That concern sits alongside decisions made by the company’s administrators and secured lender. FTI Consulting was appointed receiver of ACP Riley Street, David Jones’ parent company. Separately, secured lender Hilco appointed Christopher Hill, David McGrath and Joanne Dunn of FTI Consulting as joint and several receivers and managers. FTI is expected to provide an update on store closures and job losses later this week.

The retailer has 38 sites, and reports over the weekend said it planned to close up to 26 stores across its network, including five in Westfield shopping centres. Those reports describe a plan, not confirmed closures. Staff and suppliers, including fashion brands, face uncertainty while the receivers and administrators assess the business.

Rent, Restructuring and the People Below

Scentre Group, Westfield’s owner, said David Jones had not paid rent since September 30 and had rejected help to retain staff. David Jones had sought a rent reduction ahead of the Christmas period. The breakdown in negotiations has now been followed by administration, while the retailer’s physical and online stores continue to trade as normal.

David Jones was owned by private equity group Anchorage Capital Partners. On Tuesday, reports emerged that it had failed to file its 2026 accounts with the Australian Securities and Investments Commission. The company reported a $95.5 million loss to ASIC in 2025, after a $74.1 million loss in 2024. Staff and suppliers are left facing the consequences as administrators and receivers take control of the process.

Chief executive Erica Berchtold thanked customers, the David Jones team and partners for their continued support. Addressing staff at the company’s Melbourne headquarters, she said: “We have a well-developed plan on how to reset the business, for the future and will be working with the Administrators, the Receivers and our secured lender as we continue to pursue that reset of the business.” The plan’s effect on jobs remains unknown.

The Official Case for “Breathing Space”

Christopher Hill, managing director of FTI Consulting, said a slowing economy had contributed to the company’s position. “We understand the current retail trading environment, rising costs, a significant and outdated retail footprint, and supply chain challenges have led to this point,” he said. He described voluntary administration and receivership as providing “breathing space and an opportunity to restructure the business,” while acknowledging “the need for difficult decisions.”

Dwyer welcomed the federal government’s payday super reforms, arguing they would help protect workers from losing up to three months of unpaid superannuation if a company collapsed. That measure addresses one stated risk; the union’s other priority remains preserving jobs wherever possible.

Economic commentator Roger Montgomery told business broadcaster Ausbiz last week that David Jones’ struggles reflected broader economic conditions. “David Jones is 188-years-old, it survived two world wars, it survived the Great Depression, multiple financial crisis and yet under this government and the policies put in place the nails are being hammered into the coffin,” he said. Montgomery had previously criticised the Albanese government, and also conceded that online sales were affecting David Jones.