David Jones enters voluntary administration

David Jones entered voluntary administration on November 5, after its board appointed McGrathNicol as administrators, leaving the future of the retailer’s 38 stores and its staff, suppliers and creditors to be assessed. The appointment was the first in the 188-year-old department store chain’s history, according to reporting on the development. The decision followed a dispute with major landlord Scentre Group over rent and proposals for the retailer to continue trading. Scentre chief executive Elliott Rusanow said David Jones had paid no rent since September 30 and was in breach of its obligations. Scentre said it had offered support to Anchorage Capital Partners, David Jones’ owner, but that Anchorage rejected the offer. The details reflect Scentre’s account of the negotiations; David Jones and Anchorage did not provide a response in the reports. Before the appointment, lender Hilco Capital said it had provided funding above its agreed facility to allow David Jones to increase stock ahead of Christmas trading and had funded the retailer through December. The administration appointment followed reports that the business was under financial pressure, including delayed supplier...