David Jones administrators reviewed finances months before retail collapse

Administrators for Australian department store group David Jones revealed they reviewed its financial situation six months ago, according to the Guardian. The Guardian reported that administrators also discussed restructuring the business three months before it fell into administration, even as the company continued buying new inventory and fell months behind on payments to suppliers. [1]

The Daily Mail reported that the department store had entered voluntary administration and receivership on Thursday after failing to pay rent to Westfield owner Scentre Group. As FTMQ News reported earlier, the collapse puts the jobs of 6,000 workers at risk across the retailer's operations. [2][9]

Despite the collapse into administration, the Daily Mail said that David Jones hit record sales and customer foot traffic in the days following the announcement. The outlet noted that the retailer has updated its refund and exchange policies for shoppers during the administration process. [2]

Welsh merchant David Jones founded the retailer in 1838. It is recognized as the oldest continuously operating department store in the world still trading under its original name. [7]

The Guardian reported that the restructuring process could leave unsecured creditors with substantial financial losses. [1]