Receivers for the David Jones retail chain have announced the Newmarket store will close. In a statement to 1News, Christopher Hill, David McGrath and Joanne Dunn of FTI Consulting confirmed the Auckland department store would be included with 18 others in Australia to be shuttered.
"Today, the receivers have made the difficult decision to proceed with an urgent restructure of the business, in line with managementâs plan for the future of David Jones that was being worked on prior to the appointment," the statement said. "As part of this restructure, the receivers have commenced an immediate consultation process for all staff associated with 19 stores that have been identified for closure.
For the immediate term these stores will continue trading and while there is no final date for the closures, we anticipate they will cease trading by the end of the year.
"David Jones staff have been informed today, with the consultation period continuing over the next seven days." In a retail market dominated by online offerings there's still room for the personal touch and carefully crafted in-store experiences, a member of the family that set up department store chain David Jones believes.
After almost two centuries, the retailer is on the chopping block, collapsing into receivership and administration. Charles Edward Lloyd Jones was a fifth-generation member of the founding family to work in the business, and the last.
He left in 1993 after finishing up as store manager at David Jones Chatswood on Sydney's lower north shore, and similar stints at stores at Bankstown in the west and Bondi Junction in the east.
With a wealth of hands-on retail experience under his belt, including jobs in Malaysia, Hong Kong and even David Jones' rival Myer, he's still a big believer in the value of good service, unique offerings and leadership â arguably all things the business has lacked since it was delisted from the stock exchange in 2014.
"If you don't have a unique offer, then it's a race to the bottom with price," the 68-year-old told AAP.
"And then if it's a race to the bottom with price, people start cutting staff and when they start cutting staff the service diminishes." Asked if he had circled David Jones looking for someone to ring up his purchase, Lloyd Jones said: "Too many times." Administrators are seeking a buyer, or recapitalisation of the business, after a rental dispute and falling profits left the chain on the brink of collapse.
They have already seen an "extraordinary" level of interest, reflecting its history as an Australian shopping destination since 1838. "We are actively engaging with domestic and international parties that have experience in both turning around and operating highly successful retail department stores," McGrath Nicol's Matthew Hutton said.
Lloyd Jones suggests any new owner will have to cut its square footage and store numbers, and have as unique an offering as they can "because otherwise you're just going to be in the same situation in another three to five years". Management also needs to "get out from behind the desk" and get on the store floors to see first-hand how customers and staff are engaging.
David Jones has up to 6000 staff in its 37 Australian stores, all of whom are waiting to see if its administration will be the beginning or end of their jobs. "The staff need leadership," Lloyd Jones said. "The period of time that I worked with the company, in the 70s through the 80s particularly, the training you got…
