Receivers in control of David Jones are reportedly set to announce the closure of half of the national retailer’s store network as they restructure the 188-year-old business.
FTI Consulting receivers are reportedly meeting with staff ahead of being expected to announce the closure of half of David Jones' footprint from 38 stores to 19 across Australia and New Zealand, according to reports from the Australian Financial Review.
David Jones operates five stores in Perth, including its most prominent location in Hay Street Mall and two others at Westfield Carousel and Westfield Booragoon.
Any store closure program would come less than a week after the receivers were called in by secured lender Hilco Capital, after directors appointed McGrathNicol administrators.
The insolvency practitioners were appointed after discussions with major landlords, including Vicinity Cenrtes and Westfield operator Scentre Group, broke down.
The administrators have cited an “extraordinary level of inbound interest” from potential buyers for David Jones as they continue to run a sale or recapitalisation process.
More to come...
