The long-troubled department store David Jones is set to enter voluntary administration as early as tomorrow, after months of speculation about its future.

The Australian Financial Review (AFR) reports that McGrath Nichol will be appointed to oversee the voluntary administration process after the board meets, as early as tomorrow, November 5.

Inside Retail has reached out to McGrath Nichol and David Jones for comment.

According to the AFR, the decision to call in administrators follows a breakdown of negotiations with landlords over lease terms, considered a key lifeline for the troubled department store.

Inside Retail has followed the David Jones saga through a series of store closures, broken down relationships with retail partners, and financial lifelines from its owner, Anchorage Capital Partners, and distressed lender, Hilco Global.

The retailer had set its sights on surviving through the key Christmas trading period after receiving a $10 million lifeline to acquire stock; it now seems likely that trading period will not come before it enters administration.

David Jones’ leadership had been trying to negotiate more favourable terms with its landlords after rumours of further closures persisted.

Scentre Group, which hosts 17 David Jones locations at its Westfield sites, said it has payment guarantees in place with David Jones since Anchorage acquired it in 2023. “David Jones has provided $45 million in bank guarantees for its stores across the Westfield Australia/New Zealand portfolio, of which the group’s share is approximately $30 million, equivalent to eight months’ gross rent,” Scentre Group told investors.

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