‘Alarming’: David Jones workers brace for job losses as store closures loom

The union representing thousands of David Jones employees is alarmed by the department store chain’s financial troubles and stands ready to protect workers in the case of mass redundancies as the company prepares to close as many as half of its stores.

“The reports of David Jones’ predicament are alarming,” the Shop, Distributive and Allied Employees’ Association (SDA) national secretary Gerard Dwyer said.

David Jones chief executive Erica Berchtold is seeking to close stores to permanently reset the department store chain’s cost base.Eddie JimThousands of David Jones workers could lose their jobs amid speculation the retailer may be put into administration as early as this week if it cannot reach an agreement to close some of its 38 stores and receive rent concessions to help it survive.

Lease and rent costs totalled $125 million for the 2025 financial year, but its debt burden also weighed heavily on the group with finance costs totalling $153 million, financial accounts released earlier this year show.

Loss-making stores at risk of being closed include its operations in Southland Melbourne, as well as Sydney’s Parramatta, Warringah and Miranda stores, sources not authorised to speak publicly said.

The SDA said the 2024 David Jones Enterprise Agreement covered 4644 employees, not including executives or warehouse staff.

David Jones’ 2025 financial report, which showed sales declined to $2 billion and losses increased to more than $95 million, listed 5652 employees in total.

Last week, the group failed to file its financial account for 2026. The corporate regulator is currently investigating David Jones for filing its 2025 accounts late, an ASIC spokesperson said.

Last December ASIC fined a dozen large proprietary companies hundreds of thousands of dollars each for the late lodgment of their financial accounts and David Jones could potentially face a similar penalty.

Dwyer said the union’s priorities were to ensure as many workers as possible were kept employed, and “protecting and prioritising all legal and financial entitlements for affected workers in the event of any redundancies”.

Thousands of David Jones workers could lose their jobs,Louise KennerleyLast week, David Jones’ owner, private equity group Anchorage Capital, confirmed it was in “intense” discussions with landlords such as Westfield-owner Scentre to decide the retailer’s long-term future by Christmas. Its survival bid is expected to include a significant number of store closures.

Suppliers have told this publication they are already restricting the financial terms of sales to David Jones due to lengthening payment terms.

Suppliers will become unsecured creditors and potentially lose significantly on any outstanding bills if the retailer goes into administration.

Distressed business lender Hilco Capital said it has provided funding to the once iconic department store to see it through the Black Friday and December sales period, which traditionally provides most of its sales for the year.

“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,” a Hilco spokesperson said. “Hilco remains supportive of the business, and any inference otherwise is false.”

David Jones declined to comment on its survival struggle, however sources close to the company said the retailer “continues to operate as usual, and there’s no change to our day-to-day operations”.

While consumer advocacy group Choice has warned shoppers to use up their David Jones gift cards while they can, the sources stressed that gift cards and David Jones Rewards remained “currently redeemable”.

When this masthead visited David Jones Warringah Mall on Tuesday, multiple sections of the shop floor were subject to heavy discounts and promotions in what looked like a significant drive to clear stock.

Suitcases from American Tourister and Samsonite and bedlinen were offered at a 40 per cent discount if a minimum amount was spent. Kitchenware, dinnerware and home appliances were being marked down by 25 per cent.

Some Country Road items were discounted by up to 50 per cent, including new arrivals at 25 per cent. Full-priced Tommy Hilfiger shirts, polos and a range of men’s shoes had been marked down by 25 per cent.

It was business as usual, according to a sales clerk, who said staff had not been advised of any operational changes.

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