David Jones employees’ future unclear as retailer enters administration

The expected but nevertheless shocking revelation that David Jones will be closing at least a proportion of its stores is likely to affect its workforce, with a workers union reinforcing its staunch support ahead of potential redundancies.

ACP Riley Street Midco, parent company of Australia’s oldest luxury department store, has appointed McGrathNicol as voluntary administrator after more than a decade of financial difficulties.

Jason Preston, Shaun Fraser, Jacinta Nielsen, and Matthew Hutton will take the role of administrators effective today, 5 November 2026.

One of the company’s lenders, Hilco, has separately appointed Christopher Hill, David McGrath and Joanne Dunn of FTI Consulting as receivers and managers, also effective today.

While David Jones will continue to trade under the control of the receivers for the foreseeable future, the exact impact on its workforce remains unknown.

In its 5 November statement, McGrathNicol and FTI Consulting highlighted that the administration and receivership will address the rising costs faced by the department store, and provide an opportunity to restructure the business.

Hill said: “We understand the current retail trading environment, rising costs, a significant and outdated retail footprint, and supply chain challenges have led to this point.”

“Voluntary Administration and Receivership provides breathing space and an opportunity to restructure the business. We will manage this process carefully, mindful of the impact on some stakeholders but also recognising the need for difficult decisions.”

While no specific workforce changes have yet been mentioned, the decision has certainly left customers and employees uncertain about the future.

In response to the announcement, the Shop, Distributive and Allied Employees Association (SDA) has voiced its support for David Jones employees. According to the BBC, David Jones currently employs 6,000 staff across its shop floors, support centres, and distribution centres across the ANZ region.

The union said its priority is protecting the legal and financial entitlements of any employees potentially let go within the restructure, and preserving jobs wherever possible.

SDA national secretary Gerard Dwyer said: "The welfare, wellbeing and security of DJs workers is uppermost in SDA's mind.

'"Their jobs are at risk through no fault of their own; the administrators and executives must leave
no stone unturned to ensure as many jobs as possible are retained and that affected workers
receive their full financial and legal entitlements without delay.

“The SDA is reaching out to our DJs members to reassure them that we have their interests
uppermost at this most distressing moment and to reassure them that we are doing our utmost to
protect their entitlements.”

David Jones chief executive Erica Berchtold said: “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.”

“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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