SYDNEY, Nov 5 (Reuters) – David Jones, Australia’s 188-year-old department store chain, entered voluntary administration on Thursday, as rising costs, sluggish retail sales and supply chain pressures weighed on its business.
The retailer joins other Australian firms that have restructured, cut jobs or closed as they struggle with the impact of high fuel costs and a slowing economy.
McGrathNicol has been appointed as voluntary administrators.
“A transaction process seeking offers for a recapitalisation of the business or a sale as a going concern will commence immediately, and will be managed by McGrathNicol,” FTI Consulting and McGrathNicol said in a joint statement.
“We will manage this process carefully, mindful of the impact on some stakeholders but also recognising the need for difficult decisions.”
Founded in Sydney in 1838 by Welsh immigrant David Jones, the retailer describes itself as the world’s oldest continuously operating department store.
With about 6,000 employees across 38 stores in Australia and New Zealand, David Jones is one of Australia’s most recognisable brands and predates London’s Harrods by more than a decade.
For generations, Australian shoppers have turned to David Jones for clothing and accessories for milestone occasions, from formal wear to school and graduation attire.
However, like its counterparts overseas, the retailer has struggled for more than a decade with the shift to online shopping and growing competition from fast-fashion chains.