Ben Nothling, entrepreneur and co-founder of footwear brand Holster, has his own fond memories of David Jones.
His are a little closer to home. āDad would always tell us stories,ā Nothling said. ā[Jones would] go over to the UK on buying trips, and bring back premium goods.ā
Nothlingās father Martin was describing David Jones, the enterprising Welsh merchant who founded the eponymously named department store in 1838. It makes Ben a sixth-generation descendant, or the great-great-great grandson of Jones. When Nothling senior learned the once-iconic retailer had fallen, he was lost for words.
āHe actually couldnāt believe it,ā said Nothling. āHeās really sad itās all come to that. How did they collapse?ā
Nothlingās shoe business is owed $130,000 by David Jones, and among hundreds if not thousands of suppliers caught in the fallout of David Jonesā spectacular collapse.
After studying business, Nothling founded the label with his wife Natalie Miller 25 years ago after visiting Bali and returning with a selection of shoes that he resold to enthusiastic demand. After the husband-and-wife duo turned their hand to designing their own (Natalie designs the prototypes), their vegan slides, sandals and sneakers now turn over about $10 million every year and are sold in 30 countries.
Around 2010, Holster entered David Jones and never ran into any issues ā until a few months ago, after David Jones started pushing out payment terms.
Two shipments of shoes delivered to David Jones in June and July werenāt paid for, which was unusual.
āDavid Jones was a big account to us ā¦ We dealt with them for 15 years. Theyād always paid us on time,ā said Nothling. āThey came back with a weird email saying, āWe need to check. Weāll come back to you.ā Soon as they were overdue, we froze their account.ā
Another shipment prepared for delivery, worth $118,000, was put on ice. David Jonesā finance team sent through some payment dates, but those came and went.
āNothing came in. Suddenly, they collapsed,ā said Nothling. āItās a lot of money to lose. It makes you quite stressed and angry.ā
āWe couldāve lost more than a quarter of a million [dollars] if we kept shipping stock.ā
Hundreds of suppliers waiting to be paid are on tenterhooks as David Jonesā receivers, managers and administrators scramble to renegotiate terms to keep shelves full ahead of the busy Black Friday and Christmas season, the most significant trading period for department stores and retailers. In an initial report to creditors, McGrathNicol directed gift card holders to fill out an online form.
Administrator McGrathNicol has reported fielding āextraordinaryā interest in the 188-year-old retailer, while receivers and managers FTI Consulting are mulling which stores from the network of 38 should be axed. Nothling will be eligible to take part in the first creditorās meeting which has been set for Thursday 17 November at 11am via Zoom link.
Nothling canāt help but wonder if years under the ownership of South African retailer Woolworths Holdings (no connection to the Australian supermarket) between 2014 and 2022 had directly contributed to the retailerās financial troubles.
In those eight years, Woolworths Holdings sold key properties that housed flagship stores, including Melbourneās Bourke Street Menās store for $121 million in 2020, and then Sydneyās Elizabeth Street for $510 million. Properties were exchanged for long-term leases. Ultimately, missed rental payments to major landlords was the final straw that tipped David Jones into administration. About 6000 jobs are on the line.
āYouāre just upset about the way the company was run,ā said Nothling. āSuppliers all got treated not in a good way. You feel sorry for the staff. Itās just a huge ripple effect.ā
David Jonesā collapse isnāt the first that Nothling has had to contend with this year. After returning from a holiday in Bali with his family earlier this year, he learned that home shopping network TVSN was shutting down. TVSN, which is having its own war with suppliers, owes him about $30,000.
Other than a shelf of goods at Holsterās head office on Noosa Beach in Queensland, Nothling doesnāt operate any retail stores of his own, opting to grow the business through wholesale and online channels.
Heās already run the numbers on a scenario where he doesnāt see any of the money back. Holster will survive, though cash flow will take a hit.
āWe can get through it, but retailās not great,ā said Nothling. āIt would give you a bit of a kick.ā
āYou gotta be a smart operator here to make money in business.ā
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Jessica Yun is a business reporter covering retail and food for The Sydney Morning Herald and The Age.Connect via X or email.From our partners
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