David Jones has entered voluntary administration and receivership for the first time in its 188-year history.

Distressed lenders Hilco Global have appointed FTI Consulting as receivers and managers, who will now run the business and assess potential store closures prior to the exploration of a sale. Administrators McGrath Nichol will assess the retailer’s finances and review its damaged relationships with suppliers.

Christopher Hill, David McGrath and Joanne Dunn have been appointed receivers and managers of ACP Riley Street Midco Pty Ltd, the parent company of David Jones Pty Limited.

The process will most likely see the investment from private equity firm Anchorage Capital Partners – which took over in 2023 following a roughly $100 million deal – wiped out. Both Anchorage and Hilco have long maintained their commitments to financially supporting David Jones.

Eleventh-hour talks between David Jones and 17-store landlord Scentre Group, which operates Westfield shopping centres, are understood to have broken down following the retailer’s pursuit of a more favourable rental agreement. Scentre Group told investors and the media that it hadn’t received rental payments from David Jones since September 30.

Stores at Westfield Parramatta, Hornsby, Southland, Woden and Carousel are among those with doubtful futures, according to reports.

“David Jones is an iconic company and so many Australians have stories and memories of visiting DJ’s stores and I thank customers, our team members and our partners for their continued support for David Jones through this period,” said CEO Erica Berchtold.

“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”.

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