{"id":946353,"date":"2026-10-30T12:20:16","date_gmt":"2026-10-30T12:20:16","guid":{"rendered":"https:\/\/www.newsbeep.com\/au\/946353\/"},"modified":"2026-10-30T12:20:16","modified_gmt":"2026-10-30T12:20:16","slug":"australias-oldest-department-store-david-jones-facing-financial-collapse-after-188-years","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/au\/946353\/","title":{"rendered":"Australia’s oldest department store David Jones facing financial collapse after 188 years"},"content":{"rendered":"

The future of the nation\u2019s oldest department store, David Jones<\/a>, is under a cloud with store closures being floated to save the retail<\/a> empire from extinction.<\/p>\n

After 188 years in business, the chain is reportedly on the verge of collapse and looking for a financial saviour with deep pockets, according to The Australian.<\/p>\n

WATCH THE VIDEO ABOVE: David Jones faces collapse after 188 years<\/p>\n

Know the news with the 7NEWS app: Download today Arrow<\/a><\/p>\n

A company spokeswoman confirmed to 7NEWS.com.au their Chief Executive Officer was conducting \u201ca review of the portfolio of stores across Australia and the trading terms with suppliers and brand partners\u201d.<\/p>\n

\u201cErica Berchtold\u2019s priority is to accelerate the execution of the business\u2019s INSPIRE30 strategy and is in advanced discussions with key stakeholders about how David Jones is adapting to the ever-changing retailing landscape,\u201d the spokeswoman said.<\/p>\n

\"AfterAfter nearly two centuries in business, the iconic Australian retailer is reportedly on the verge of collapse as major luxury brands flee and suppliers go unpaid. Can the beloved department store survive its biggest crisis yet? Credit: 7NEWS<\/p>\n

It has been reported the luxury retailer has struggled to pay some suppliers and has lost major brands, including Christian Dior, Gucci and Chanel.<\/p>\n

Berchtold was only appointed in June to take the reins of the company with the aim to sharpen cost efficiency and capability.<\/p>\n

At the time David Jones<\/a> also announced their refinancing partnership with lending facility Hilco.<\/p>\n

What the experts sayBe the first to know: Add 7NEWS as your preferred news source on Google\"Google<\/p>\n

Trading conditions are currently dire, with Aussie shoppers tightening their purse strings<\/a> amid rising interest rates<\/a> and petrol price surges.<\/p>\n

Business strategist and consumer behaviour analyst Barry Urquhart warned the situation was critical.<\/p>\n

\u201cA boom Christmas trading period will not be a saving grace for David Jones. It will simply delay the inevitable,\u201d the retail expert told 7NEWS.<\/p>\n

\u201cDavid Jones cannot trade out of this situation. The issue is fundamentally capital inadequacy. It is about cash flow, or in short, bottom line, liquidity. Without liquidity, you\u2019re sunk.\u201d<\/p>\n

\"DavidDavid Jones, Australia\u2019s oldest department store with 188 years of history, is facing a severe financial crisis and potential collapse. Credit: 7NEWS<\/p>\n

Associate Professor Carol Tan from RMIT University believed the store\u2019s history alone wouldn\u2019t be enough to save it, but said the retail giant could still be saved if it opted to downgrade operations and close a number of stores.<\/p>\n

\u201cIt\u2019s got legacy, it\u2019s got heritage, but as we can see, heritage is no longer enough,\u201d she said.<\/p>\n

\u201cI am confident that it can be saved, not in the way that they sell right now, but maybe less stores.\u201d<\/p>\n

The department store has survived two world wars and the Great Depression, and long-time shoppers hope it can survive this current crisis.<\/p>\n

Retail property giant Vicinity has reported department store sales are especially slumping, down 6.5 per cent in the past three months alone.<\/p>\n

The department store operates 38 outlets across Australia and New Zealand and is believed to employ more than 5000 workers.<\/p>\n

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