David Jones to close half its stores, employee futures in doubt
SHARE THIS ARTICLE
Further to entering administration and the appointment of FTI Consulting to take over operations, David Jones will see 19 of its 38 stores close, likely by the end of the year.
In a media statement issued on 11 November, receivers Christopher Hill, David McGrath and Joanne Dunn of FTI Consulting confirmed that the restructure of the business will commence with a consultation process with staff employed at 19 of the stores identified for closure.
The stores include: Carousel (Western Australia), Garden City (Western Australia), Glen Waverley (Victoria), Green Hills (NSW), Hay Street Mall (Western Australia), Highpoint (Victoria), Hornsby (NSW), Macarthur Square (NSW), Macquarie Centre (NSW), Malvern Central (Victoria), Marion (South Australia), Newmarket (New Zealand), Parramatta (NSW), Robina Town Centre (Queensland), Sunshine Plaza (Queensland), Warringah Mall (NSW), West Lakes (South Australia), Woden (ACT) and Wollongong Central (NSW).
The stores will continue operation in the immediate term, with the statement forecasting closure by the end of the year.
The statement said: “David Jones staff have been informed today, with the consultation period continuing over the next seven days.”
“The Receivers recognise the restructure will have a material impact on many individual members of the David Jones team and commit to treating all employees with fairness and respect throughout the process. Whilst the impacts are highly regrettable, the Receivers believe the steps are unavoidable if David Jones is to continue as a viable business and these measures will help give David Jones the best chance for a sustainable future.
“People are at the heart of David Jones and the team puts customers first, every day. The Receivers ask that respect be shown for the team members, particularly those affected by today’s announcement.”
HR Leader reached out to FTI Consulting to ascertain how many employees would be affected, but did not receive a reply by the time of publication.
As reported, the BBC estimated that David Jones currently employs approximately 6,000 staff across shop floors, support centres and distribution centres across Australia and New Zealand.
According to media reports, David Jones chief executive Erica Berchtold said: “The business could not continue operating as it was. We had a plan to reset the business and we still have a plan to reset the business.”
“Put simply, our store portfolio is no longer the right shape for the business, and this change is about creating a network that is financially sustainable for the future.”
RELATED TERMS
An employee is a person who has signed a contract with a company to provide services in exchange for pay or benefits. Employees vary from other employees like contractors in that their employer has the legal authority to set their working conditions, hours, and working practises.
The term "workforce" or "labour force" refers to the group of people who are either employed or unemployed.
Want to see more stories from trusted news sources?Make HR Leader a preferred news source on Google.
