London
10 °C
Manchester
10 °C
Glasgow
Dublin
Belfast
Washington
Denver
9 °C
Atlanta
Dallas
19 °C
Houston Texas
17 °C
New Orleans
El Paso
Phoenix
Los Angeles
-1 °C
4 °C
13 °C
13 °C
24 °C
11 °C
David Jones Confirms Closure of Parramatta Store Amid Nationwide Restructuring
NYSE - LSE
David Jones Confirms Closure of Parramatta Store Amid Nationwide Restructuring
Department store chain David Jones has officially confirmed the closure of its Parramatta outlet, marking the latest step in a sweeping restructuring effort that will shutter 19 stores across Australia and New Zealand by the end of December. The move leaves thousands of employees in employment limbo as receivers attempt to stabilize the financially troubled retailer.
David Jones has confirmed the closure of its Parramatta store, joining a list of 19 locations across Australia and New Zealand that will cease trading by the end of December. The announcement was made on Wednesday by FTI Consulting, the receivers appointed to manage the embattled retail chain’s restructuring.
The closures represent a significant contraction for the historic retailer, with New South Wales identified as the hardest-hit state. Seven stores in NSW are facing closure, including the outlet in Parramatta. Other notable closures include the store on Hay Street Mall in central Perth and the chain’s only New Zealand location at Newmarket in Auckland.
The restructuring has left approximately 6,000 employees across five states in a state of uncertainty. Bernie Smith, the NSW secretary of the Shop, Distributive and Allied Employees Association, described the situation as a "sad and stressful day" for workers. He attributed the crisis to long-term management failures, stating, "No one should forget that their plight is entirely the fault of bad management decisions and initiatives going back years, if not decades."
Smith confirmed that the union would meet with company management and administrators on Thursday to ensure all staff receive their entitled payments. FTI Consulting stated that consultation with affected employees would continue for a week following the announcement.
The receivers emphasized that the closures are necessary to secure the company's survival. In a statement, FTI noted, "The receivers recognise the restructure will have a material impact on many individual members of the David Jones team. These measures will help give David Jones the best chance for a sustainable future." While no final date has been set, the receivers anticipate the closures will be completed by the end of 2026.
Business groups are urging consumers to continue shopping at remaining stores during the critical retail period from Black Friday through Boxing Day. Paul Nicolaou, executive director of Business Sydney, warned that the total collapse of David Jones would be a "very big blow" for an already struggling economy and must be avoided if possible.
The 188-year-old retailer has faced persistent financial difficulties, including struggles with rent payments and daily operations. The company posted a loss of $95.5 million in the 2024/25 financial year, following a $74 million loss in 2023/24. David Jones was sold to Anchorage Capital Partners for just under $100 million in 2023, after being acquired by South Africa’s Woolworths Holdings in a $2.1 billion takeover in 2014.
Charles Edward Lloyd Jones, a fifth-generation member of the founding family and the last to work in the business, left the company in 1993. He criticized the current state of retail, arguing that without unique offers, stores engage in a "race to the bottom with price," which leads to staff cuts and diminished service. Lloyd Jones noted he had circled David Jones stores multiple times looking for someone to assist with purchases.
Expressions of interest to buy the business must be filed by close of business on Friday.
(F.Jackson--TAG)
