Key Takeaways:

• After 188 years, David Jones has gone into voluntary administration.
• Rising costs, sluggish retail sales, and supply chain pressures were cited as the cause. 
• Retail analysts expect a large portion of its store network to close, putting thousands of jobs at risk.

David Jones CEO Erica Berchtold said the company would work with its administrators, receivers, and secured lenders during the voluntary administration process.

WHO: Founded in Sydney in 1838 by Welsh immigrant David Jones, the retailer describes itself as the world's oldest continuously operating department store, predating London’s Harrods by more than a decade. In 1876, David Jones's son, Edward Lloyd Jones, transformed the business into a luxury department store inspired by European retailers, where customers could browse accessories and enjoy gourmet meals while waiting for their clothes to be tailored.  Known locally as DJs, the retailer employs about 6,000 staff and has 38 physical stores,17 of which are in Westfield shopping centers.

WHY: The voluntary administration follows David Jones's private equity owner rejecting a rescue deal with major landlord Scentre Group, Westfield's parent company. Rising operating costs, weak consumer spending, and supply chain tensions have exacerbated David Jones’s crisis. Compounding these factors is the structural pressure on the traditional department store model, which has been losing ground to e-commerce and competition from fast-fashion chains for over a decade.

IN THEIR OWN WORDS:  "David Jones is an iconic company, and so many Australians have stories and memories of visiting DJ's stores," said its CEO Erica Berthold, adding the brand...