David Jones’s receiver is set to close a significant number of the retailer’s department stores, with rumours reckoning half will go, according to the ABC and Channel 9.
Staff in the affected locations are being briefed, with more formal announcements expected later today.
The retailer, which has 38 stores nationally, was placed in voluntary administration less than a week ago. McGrathNicol has been appointed as the voluntary administrator.
The collapse of the 188-year-old department store comes after negations with major landlord Westfield broke down, with the retailer’s owner, Scentre Group, confirming David Jones had not paid rent since September in breach of its contracts.
Five outlets in Westfield shopping centres have already been flagged for closure due to them running at a loss, including Parramatta, Hornsby, Woden in Canberra, Carousel in Perth and Southland in Melbourne.
Analytics firm MST Marquee has speculated about which stores may close.
These include David Jones in the Adelaide Mall and the Marion store.
Mr Kierath said there was a place for a new-look version of David Jones, potentially with a focus on flagship stores with an enhanced offering.
“I think there’s definitely a place for that, and with an enhanced food and beverage offering,” he said.
Administrator McGrathNicol has given David Jones creditors until Monday to submit their proof of debt ahead of its first creditors meeting on Tuesday, which will be held remotely.
The call-out, which was sent with documents late on Tuesday afternoon, is likely to see thousands of small to large businesses come forward with claims, from fashion brands to major landlords.
There are now just days left for other entities to put in expressions of interest to buy David Jones.
McGrathNicol said it intended to lodge an application with the NSW Supreme Court to “extend the convening period, providing additional time to undertake a sale and/or recapitalisation process for David Jones Group”.
It added that if the convening period was extended, the administrators’ report to creditors and the second meeting of creditors would be held at a later date.
ABC News yesterday confirmed that David Jones was up to date with superannuation payments to its 6,000 employees, in line with new pay-day laws that came into effect in July.