David Jones sees record sales boost after entering into voluntary administration

Australian shoppers appear to have heeded calls to back their own retailers with a strong show of faith for David Jones.

The world’s oldest department store trading under its original name entered voluntary administration and receivership on Thursday after years of mounting losses and a breakdown in talks with its landlords.

It’s now on the chopping block after private capital owners Anchorage Capital Partners failed to raise the ailing business from the ashes left by the former proprietor, Woolworths of South Africa.

But in an apparent vote of confidence welcomed by its receivers, customers have flooded its 38-store network and run up sales at the tills and online.

“Foot traffic and sales throughout David Jones stores and online have been at record levels, reinforcing the public’s love for David Jones and support for an iconic Australian brand,” receivers Christopher Hill, David McGrath and Joanne Dunn of FTI Consulting said on Monday.

While some brands, including multiple luxury retailers, have taken stock out of some stores, David Jones’ trade partners have been supportive as receivers work to keep stock available.

“Following the strong trading in recent days, the receivers are placing orders for replenishment stock in the normal course of business with suppliers that have confirmed trading agreements,” they said in a statement.

People holding David Jones gift cards are advised to spend them in-store or online now, in case the sale is unsuccessful, given the retailer has stopped issuing new cards.

The timeline for change-of-mind in-store exchanges has been reduced from 30 days to two weeks, unless a good is faulty and qualifies for a full refund.

Online purchases get an extra five days, to accommodate delivery times.

With expressions of interest for the retail giant due by Friday, the administrators charged with finding a new owner have also been surprised.

“There has been an extraordinary level of inbound (or foreign) interest from a range of highly credible industry players and financial investors,” McGrathNicol restructuring partner Matthew Hutton said.

That interest is separate from the administrators’ efforts to drum up potential buyers, reflecting David Jones’ pivotal role as an Australian destination shopping experience for almost two centuries.

“We are actively engaging with domestic and international parties that have experience in both turning around and operating highly successful retail department stores,” Mr Hutton said.

Market speculation that some David Jones stores, including one in Auckland, could close so the company can focus on bigger capital city assets has created uncertainty for its 6000 employees.

The administrators said the legal process would allow a new buyer to take on a “streamlined and agile operating model”.

David Jones is more than a month behind on rent to major landlord Scentre, which owns the major Westfield shopping centres where 17 of its stores are located.

But the receivers were cautious, asking for staff to be respected.

“We would ask that speculation on this matter is avoided out of respect for the real people who are the heart of the David Jones business and continue to put customers first every day,” they said.

As the process plays out, David Jones is eyeing the four-day pre-Christmas shopping event, between Black Friday on November 27 and Cyber Monday on November 30, when Australians often spend close to $7 billion.

“It is critical every Australian back the retailers that back Australia,” Australian Retail Council boss Chris Rodwell said.

David Jones posted a $95.5 million loss in 2024/25 - up from a $74 million loss for 2023/24.

Accounts for 2025/26 have yet to be filed with the corporate regulator.