David Jones seeks buyer across 38 stores
Key points
- Administrators opened a sale process for David Jones as local and global suitors expressed interest in acquiring the business.
- Major retail brands began pulling inventory from department store shelves, while suppliers halted shipments pending the administration's outcome.
- The sale process follows a push by management to close at least half its retail network and restructure rental debt obligations.
Administrators at McGrathNicol have launched a sale process for David Jones across its 38 stores after the 188-year-old retailer entered voluntary administration Nov. 5.
The collapse followed unsuccessful negotiations with major commercial landlords after the company sought to shut down at least 19 stores and obtain rent-free terms for December.
"There has been an extraordinary level of inbound interest from a range of highly credible industry players and financial investors in purchasing this iconic Australian brand and business," said McGrathNicol Restructuring Partner Matthew Hutton.
Administrators established a deadline for initial expressions of interest, while secured lender Hilco appointed FTI Consulting as receiver to oversee daily operations.
Prior to entering administration, the department store group attempted to exchange equity with landlords to release roughly $70 million supporting its rental guarantee facilities.
The private equity owner Anchorage Capital Partners, which acquired the retail chain, has not yet stated whether it will submit a formal bid in the current transaction process.
