‘Pretty distressing’: WA David Jones workers brace for job losses as store closures loom

The union representing hundreds of WA David Jones employees says it stands ready to protect workers amid fears of mass job losses after the iconic retailer was surrendered to administrators and receivers.

The Shop, Distributive and Allied Employees’ Association said news of the administration was “pretty distressing and stressful” for its members. David Jones’ collapse leaves 6000 jobs hanging in the balance, with about 650 staff in WA.

“For so many of our members, they’re really loyal to the brand, they are really proud to work at David Jones, been long time David Jones employees,” the union’s WA secretary Ben Harris told The West Australian on Friday.

“This is all coming into Christmas. Our members are also members of their own household and having zero certainty about what Christmas looks like is no doubt really stressful.

“If the worst happens, we stand ready to support them through that process and make sure that we can look after them and their entitlements.”

The first creditors’ meeting is scheduled for November 17.

After months of speculation about David Jones’ financial viability, the 188-year-old department store’s directors on Thursday handed the reins of the business to administrators McGrathNicol, which is set to run a sale process.

FTI Consulting was then appointed as receivers and managers, meaning it will oversee the department store’s day-to-day operations.

Just hours after the news broke, upscale brands like Scanlan Theodore, Viktoria & Woods, Zimmermann, Sportscraft, Saba and Carla Zampatti were seen taking back their products from David Jones stores in the Eastern States.

Several empty shelves were also seen at David Jones Karrinyup and Hay Street, which had bare Zimmermann shelves.

It was also revealed David Jones’ flagship Perth store on Hay Street owed $1.5 million in rent.

“We hope that they can trade through it. There’s been some recent success from a WA point of view with Betts . . . (which) has come out of administration recently,” Mr Harris said.

Earlier this week, Westfield owner Scentre Group revealed the department store chain — which has 17 of its 38 stores located within Westfield shopping centres — had not paid rent since September 30.

Fellow landlord Vicinity Centres disclosed $2.2m in unpaid rent.

Speaking to The West in Perth on Thursday, Vicinity boss Peter Huddle believed there was a future for the heritage brand, but in a “streamlined manner moving forward”.

“We have been working with David Jones, we will continue to work with them, either directly through their administrators or through potential buyers,” he said.

Asked if Vicinity would be disadvantaged if David Jones closed stores within its malls, Mr Huddle said: “For Australia I think losing David Jones is a loss, but for us . . . we’re not overly concerned”.

“We know we have some very good real estate that will be in demand for David Jones or for whoever might be interested in that business,” he said.

“Alternatively, we have plans in the event that there is no David Jones.”

The $444 billion retail sector urged Australians to “back the retailers that back Australia”.

“In entering voluntary administration, (David Jones) has the opportunity to reshape its operations so it can play a part in Australia’s retail future,” Australian Retail Council chief Chris Rodwell said.

“Retail does not operate in isolation — it is a vital part of our communities across our nation and a bellwether for our broader economy.

“We can’t afford to see this contribution fall prey to poor approaches to economic management and regulation, or a lack of efforts to hold ultra low-cost global platforms to the same standard as Australian retailers. Let’s back the retailers that back Australia.”