The union representing thousands of David Jones employees is alarmed by the department store chainโs financial troubles and stands ready to protect workers in the case of mass redundancies as the company prepares to close as many as half of its stores.
โThe reports of David Jonesโ predicament are alarming,โ The Shop, Distributive and Allied Employeesโ Association (SDA) National Secretary Gerard Dwyer, said.
Thousands of David Jones workers could lose their jobs amid speculation the retailer could be put into administration as early as this week if it cannot reach an agreement to close some of its 38 stores and receive rent concessions to help it survive.
The SDA said the 2024 David Jones Enterprise Agreement covered 4644 employees, which doesnโt include executives or warehouse staff.
David Jonesโs 2025 financial report, which showed sales declined to $2 billion and losses increased to more than $95 million, listed 5652 employees in total.
Dwyer said the unionโs priorities are to ensure as many workers as possible are kept employed, and โprotecting and prioritising all legal and financial entitlements for affected workers in the event of any redundanciesโ.
Last week, David Jones owner, private equity group Anchorage Capital, confirmed it was in โintenseโ discussions with landlords such as Westfield owner Scentre to decide the retailerโs long-term future by Christmas. Its survival bid is expected to include a significant number of store closures.
Suppliers have told this publication they are already restricting the financial terms of sales to David Jones due to lengthening payment terms.
Suppliers will become unsecured creditors and potentially lose significantly on any outstanding bills with the retailer if it goes into administration.
Distressed business lender Hilco Capital says it has provided funding to the once iconic department store to see it through the Black Friday and December sales period, which traditionally provides most of its sales for the year.
โHilco Capital has funded above the agreed facility to allow David Jones to increase stock holdings ahead of the busy Christmas trade and sales period,โ a Hilco spokesperson said. โHilco remains supportive of the business, and any inference otherwise is false.โ
David Jones declined to comment on its survival struggle, however sources close to the company said that the retailer โcontinues to operate as usual, and thereโs no change to our day-to-day operations.โ
While consumer advocacy group Choice has warned shoppers to use up their David Jones gift cards while they can, the sources stressed that gift cards and David Jones Rewards remained โcurrently redeemableโ.
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Colin Kruger is a senior business reporter for the Sydney Morning Herald and The Age.Connect via email.
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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