David Jones’ flagship Perth store in Hay Street Mall is one of three in the city to close as as administrators work to keep the 188-year-old retailer alive.
The Perth flagship on Hay Street, as well as Garden City and Carousel will be closed, with hundreds of jobs to be axed, receivers FTI Consulting on Wednesday said. They are among the 19 stores that are set to be shuttered nationally.
While there is no final date for the closures, FTI anticipates the affected stores will stop trading by the end of the year.
“Today, the receivers have made the difficult decision to proceed with an urgent restructure of the business, in line with management’s plan for the future of David Jones that was being worked on prior to the appointment,” they said.
“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.”
Your user agent does not support frames or is currently configured not to display frames. This frame is attempting to link to https://omny.fm/shows/news-worthy/david-jones-to-close-iconic-perth-store-hundreds-of-jobs-at-risk/embed
David Jones’ other stores in WA, Karrinyup and Claremont, are set to remain open for now.
In a letter to suppliers, seen by The West Australian, David Jones chief executive Erica Berchtold said its store portfolio was no longer the right shape for the business.
She said the store closures were about creating a network that was financially sustainable for the future.
“We know this news will be difficult to hear, and we do not take it lightly. Our brand partners are an important part of the David Jones story, and we are grateful for your support, your partnership and the care you show for our customers and our teams,” she said.
The last day of trade for each store is yet to be confirmed. With Black Friday sales just weeks away, David Jones expects affected stores to continue trading through the peak period.
The receivers did not provide an expected number of job losses for David Jones, which currently employs 6000 people.
Stores to be closed:
- Carousel, WA
- Garden City, WA
- Hay Street Mall, WA
- Glen Waverley, VIC
- Green Hills, NSW
- Highpoint, VIC
- Hornsby, NSW
- Macarthur Square, NSW
- Macquarie Centre, NSW
- Malvern Central, VIC
- Marion, SA
- Newmarket, NZ
- Parramatta, NSW
- Robina Town Centre, QLD
- Sunshine Plaza, QLD
- Warringah Mall, NSW
- West Lakes, SA
- Woden, ACT
- Wollongong Central, NSW
More to come.
Get the latest news from thewest.com.au in your inbox.
Sign up for our emails