The Australian department store chain David Jones has gone into voluntary administration for the first time in its 188-year history, putting thousands of jobs at risk, the Guardian reports. Staff were told on Thursday that the board had appointed McGrathNicol as administrators, after which the retailer's main lender installed FTI Consulting as receivers to run the business day to day.
The move follows the breakdown of rent talks with Westfield owner Scentre Group, which said the chain had not paid rent since September and that its offer to keep the business trading had been rejected by owner Anchorage Capital Partners. David Jones employs more than 6,000 people across 38 stores. Analysts expect closures to fall mainly on suburban and regional shopping centre sites, while suppliers and customers holding gift vouchers could face losses.
Source: The Guardian Australia