An iconic store on life support: DJs gets more time, but no more money
David Jones has avoided immediate collapse by extending its debt facility with lenders until 2028, despite reporting a loss of over $95 million last year. The retailer has returned to profitability in the first nine months of 2026, posting a $15.4 million pre-tax profit and a 3.6% sales increase. However, it continues to face financial strain, relying on suppliers who have extended payment terms amid cash flow concerns. While new investment and improved trading have helped stabilize the iconic department store, its long-term recovery remains uncertain.
- ▪David Jones extended its $150 million to $190 million debt facility with Gordon Brothers until 2028, avoiding immediate default.
- ▪The company reported a pre-tax profit of $15.4 million for the first nine months of 2026, reversing a $95 million loss in the prior year.
- ▪Suppliers have been pressured to accept delayed payments, with some shifting business to competitors like Myer.
- ▪Anchorage Capital Partners acquired David Jones in 2022 for $100 million and invested $250 million in store and IT upgrades.
- ▪Despite improved performance in early 2026, ongoing consumer economic pressures raise questions about the sustainability of the turnaround.
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