David Jones enters administration after 188 years in Westfield rent row

David Jones, the 188-year-old Australian department store chain, entered voluntary administration on Thursday, 5 November 2026, after talks with its biggest landlord broke down. Scentre Group, which runs Westfield shopping centres, said the retailer had not paid rent since September and was in breach of its leases. McGrathNicol was appointed as administrator and FTI Consulting as receiver and manager. The stores will keep trading while the receivers review the business and seek offers to recapitalise it or sell it as a going concern. The chain, founded 188 years ago, employs more than 6,000 people whose jobs are now at risk, according to one report.

David Jones is a household name in Australia, and its collapse is a sign of how hard the department store model has become. Large stores in prime shopping-centre locations carry heavy rent and staff costs, while shoppers have moved online and to specialist and discount chains. The receivers pointed to rising costs, supply chain pressure, tough trading and an outdated store footprint as the reasons.

The trigger was rent. A department store often anchors a shopping centre, bringing in visitors who also spend in smaller shops, When David Jones and Scentre could not agree, and rent went unpaid from September, the landlord's position left the retailer with little room. With 17 of its 38 stores in Scentre centres, according to reports, the relationship was central to the business.

For investors, the case shows the risk of private equity turnarounds in old retail brands. Anchorage Capital Partners bought David Jones in 2023, but the business went on to post losses of A$74.1 million and then A$95.5 million. The administration does not necessarily mean the stores will close: administrators will look for a buyer or new money,

For Indian readers, the story echoes pressures seen across global retail, where shoppers' move to online buying and high rents in malls have squeezed big-store chains.

Peepals calculation: David Jones's reported losses in the last two years add up to about A$169.6 million (95.5 + 74.1 = 169.6), and the 2025 loss was about 29% larger than the 2024 loss (95.5 ÷ 74.1 ≈ 1.29). Scentre's centres hosted about 45% of its stores (17 ÷ 38 ≈ 0.447). Our calculation from the reported figures.

Short-term: Stores stay open under the receivers. Staff, suppliers and gift-card holders will wait for the administrators' review, and Scentre must decide what to do with the space if stores close.

Long-term: The outcome may be a sale, a recapitalisation or a smaller network. Whatever happens, the case will shape how landlords and anchor tenants negotiate leases in Australian shopping centres.

Who is affected: More than 6,000 employees, suppliers and brands sold in David Jones stores, Scentre Group and other landlords, shoppers, and Anchorage Capital Partners.

What to watch next: Whether McGrathNicol and FTI Consulting find a buyer or new investors, and which stores, if any, close.

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