Business · Companies · 2 hrs ago
David Jones faces possible store closures as union warns of job losses
David Jones is considering closing up to half of its 38 stores as it tries to reduce costs and secure rent concessions.
The Australian department store chain is in discussions with landlords about its long-term future, with a decision expected by Christmas.
The union says thousands of jobs could be at risk if the company makes mass redundancies.
The union agreement covers 4,644 employees, while the retailer’s 2025 financial report listed 5,652 staff in total.
Sales fell to $2 billion and losses rose above $95 million in that financial report.
The chain’s owner, private equity group Anchorage Capital, is negotiating with landlords, and distressed lender Hilco Capital has provided funding for the busy Black Friday and Christmas sales period.
The union says it will seek to keep workers employed and protect their entitlements if redundancies happen.
David Jones continues to operate as usual, and its gift cards and rewards are currently redeemable.
David Jones is reviewing its store network as financial pressure raises the prospect of closures and job losses.
The retailer operates 38 stores across Australia and New Zealand, and reports say it may reduce that number to between 12 and 20.
The union representing thousands of employees says it is preparing to protect workers if redundancies occur.
David Jones recorded a pre-tax loss of $95.5 million for the year to June 29, 2026, as sales fell by 8.7 per cent.
The company’s owner, Anchorage Capital, is in discussions with landlords about the retailer’s future and rent terms.
- Who
- David Jones, its owner Anchorage Capital, and the Shop, Distributive and Allied Employees’ Association (SDA).
- What
- David Jones is reviewing its stores and trading terms, with reports of possible closures and job losses.
- When
- The reports were published on November 2 and 3, 2026.
- Where
- The retailer operates stores across Australia and New Zealand.
- Why
- The company is seeking to address financial pressure, including losses and the cost of its store network.
This story does not have two clearly opposing sides.
David Jones closed its stores at Castle Towers in Sydney and Tuggerah on the NSW Central Coast.
Anchorage Capital confirmed it was in discussions with landlords about David Jones’ long-term future.
Reports said David Jones was reviewing its store network and could reduce its 38 stores to between 12 and 20.
The SDA said it was alarmed by the retailer’s financial troubles and stood ready to protect workers if mass redundancies occurred.
- Current store count
- 38 across Australia and New Zealand
- Potential store count
- 12 to 20, according to reports
- Employees covered by 2024 agreement
- 4,644
- Total employees listed in 2025 financial report
- 5,652
- Pre-tax loss
- $95.5 million for the year to June 29, 2026
- Sales change
- Fell 8.7 per cent for the year to June 29, 2026
3 sources
What people are saying
The reports of David Jones’ predicament are alarming
Hilco Capital has funded above the agreed facility to allow David Jones to increase stock holdings ahead of the busy Christmas trade and sales period
The company is finalising its FY26 accounts and does not comment on speculation regarding potential store closures
The inevitability is we will not be seeing David Jones around in the very near future